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15 rue de Richelieu F-75001 Paris square de Meeûs, 1 B – 1000 Bruxelles Tél : + 33 1 44 50 59 59 ● Fax : + 33 1 44 50 59 60 Tél : + 32 2 511 74 77 ● Fax : + 32 2 511 09 49

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COUNCIL OF EUROPEAN MUNICIPALITIES AND REGIONS EUROPEAN SECTION OF UNITED CITIES AND LOCAL GOVERNMENTS

MEETING OF THE CEMR FINANCIAL MANAGEMENT COMMITTEE

PARIS, 6 SEPTEMBER 2010

Document 1For adoption

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FINANCIAL MANAGEMENT COMMITTEE PARIS, MONDAY 6 SEPTEMBRE 2010

2.30 PM

UNION DE L’EUROPE OCCIDENTALE 43 AVENUE DU PRESIDENT WILSON, 75116 PARIS

TEL. (33.1) 53 67 22 00

DRAFT AGENDA

DOCUMENT PAGE

1. Adoption of the draft agenda

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2. Adoption of the draft list of decision from the meeting of 18 September 2009

2.1 3

- Follow-up on decision of the Financial Management Committee of 18 September 2009

2.2 8

3. CEMR’s certified accounts for 2009

- Auditor’s report - Special report

3.1 3.2

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4. Realisation of the 2009 budget

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5. Results on 31 July 2010 and projection for 31 December 2010

- Membership fees

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6. Pre-draft 2011 budget

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7. Matters arising

- calls for offers for the legal audit of CEMR for the period 2011-2016

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MEETING OF THE CEMR FINANCIAL MANAGEMENT COMMITTEE PARIS, 6 SEPTEMBER 2010

Document 2.1 For decision

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FINANCIAL MANAGEMENT COMMITTEE PARIS, FRIDAY 18 SEPTEMBER 2009

DRAFT MINUTES

Present: Mr Halvdan SKARD, Chair of the Financial Management Committee

Cllr Gordon KEYMER, Vice-Chair of the Financial Management Committee, assisted by Mr Richard KITT Mr Jeremy SMITH, Secretary General of CEMR Mr Moreno BUCCI Mr Walter LEITERMANN, representing Dr Stephan ARTICUS Mr Fernando ARMAS NUÑEZ DE VILLAVICENCIO M. Andrzej PORAWSKI M. François ZARAGOZA , assisted by Mr Christophe CHAILLOU

Honorary Auditor M. Heikki TELAKIVI Professional Auditor Mr Djamel ZAHRI, representing Mr Jean-Pierre VERCAMER Also participating: Ms Dominique ARRESTAT Ms Nina HOLBROOK

The meeting was chaired by the Chair of the Financial Management Committee, Halvdan SKARD. Pascal POUPELLE, Director General of Dexia Crédit Local, greeted the Committee, welcoming the participants to Dexia’s premises, and underlining Dexia’s commitment to working to support local economies.

* * * 1. ADOPTION OF THE DRAFT AGENDA

The draft agenda was adopted.

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2. APPROVAL OF THE DRAFT MINUTES OF THE MEETING OF THE FINANCIAL MANAGEMENT COMMITTEE OF 8

SEPTEMBER 2008

The members of the Financial Management Committee approved the draft minutes. Follow-up of decisions made during the meeting of the Financial Management Committee of 8

September 2008 The members of the Financial Management Committee thanked the secretariat for the presentation of this document and took note of the follow-up of the meeting of 8 September 2008.

3. CEMR CERTIFIED ACCOUNTS FOR 2008

Auditor’s report Mr ZAHRI, representing CEMR’s Auditor, Mr VERCAMER, presented the general auditor’s report. Mr ZAHRI specified that the accounts had been approved without reserve. He recalled item 1.7 of the appendix to the certified accounts (p.20 of report 3.1), highlighting that the accounting method has been modified, as concerns expenses incurred in the framework of the ‘programmes’ activities. Mr TELAKIVI indicated that CEMR’s Honorary Auditors had no additional remarks relating to the 2008 accounts.

Special report of the auditors Mr ZAHRI explained that the special report is required under French legislation and that it covers transactions carried out between CEMR and its member associations which share a common administrator with CEMR. The members of the Financial Management Committee took note of the special auditor’s report.

Letter of recommendation of the Auditors

Mr ZAHRI presented the only point in the Auditor’s letter of recommendation, which underlined the risk to CEMR from unpaid rent relating to the Common House in Brussels. He indicated that the aim of this remark was to encourage CEMR to take action so that the organisation could rapidly recover the funds in question. The members of the Financial Management Committee took note of the recommendations of the Auditors. Responding to the question from Mr LEITERMANN regarding the ongoing legal dispute with the European Commission regarding the Med-Urbs contract, Ms ARRESTAT indicated that the 78 289 € of exceptional income in 2008 – corresponding to payment of late interest settled by the European Commission – could not be called back into question. Some 200 000€ remained subject to the ongoing legal dispute, and CEMR had a provision for this should the dispute be lost in the current appeals process. No date had yet been fixed when the case might be heard in Brussels.

4. REALISATION OF THE 2008 BUDGET Mr TELAKIVI presented the outcome of the meeting of the Honorary Auditors held in Paris on 14 September, indicating the satisfaction of the Honorary Auditors with the work performed by the secretariat. He further expressed his appreciation for the quality of the documentation prepared by the secretariat for the good financial management of the organisation. Responding to questions from Mr ZARAGOZA, the SECRETARY GENERAL explained that the increase in the budget for communication was related to the preparation of material for the 2009 General Assembly. He further recalled CEMR’s efforts to offer some financial assistance, when possible, to support the participation of elected representatives from low GDP countries at Policy Committee meetings. Ms ARRESTAT indicated that the exceptional income presented corresponded to the amounts relating to the previously mentioned legal dispute.

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Cllr KEYMER underlined that the 38 000€ of LGA’s membership fees which had been indicated as unpaid at the end of the year 2008 had been settled shortly after the report had been finalised. The members of the Financial Management Committee agreed to recommend that the Policy Committee:

Decide to carry over the results of the period, a surplus of 2 608 Euro; Give discharge to the President and Secretary General for the year 2008.

5. RESULT AT 31 JULY 2009 AND PROJECTION UNTIL 31 DECEMBER 2009

THE SECRETARY GENERAL underlined that the secretariat was closely tracking the implementation of the budget as the year approached its end. Whilst there had been some additional income, there had also been additional expenditure. He explained in particular that in organising a General Assembly at the peak of the global financial crisis, CEMR had worked to ensure that the event could be a reasonable success and not a burden for the host city. In light of this, CEMR had preferred to direct the final sums that the city would normally have settled to CEMR, into financing additional interpretation languages at the sessions of the Assembly. The Committee noted that the secretariat foresaw a balanced outcome at the end of the year.

Membership fees The Financial Management Committee noted with concern situations where certain members had not regularly settled their membership fees over the past three years, including: Association of Towns and Municipalities of Republic of Srpska: The members of the Financial Management Committee agreed the association’s request to settle, in the first stage of their recent membership in CEMR, 50% of the called fee. Association of Municipalities and Cities of the Federation of Bosnia and Herzegovina The members of the Financial Management Committee noted that the secretariat was in discussions with the association regarding membership fees. In particular, they noted that the Association had hosted a CEMR twinning seminar during the year, and that the possibility was under discussion that some related costs could be subtracted from the membership fee due to CEMR. Union of Local Authorities in Israel The members of the Financial Management Committee noted that ULAI had gotten up to date for the years 2007 and 2008, and welcomed this development. Maltese Association of Local Councils Chair SKARD noted that the Maltese situation raised particular concern given that no fee had been settled for multiple consecutive years. The SECRETARY GENERAL indicated that the association had expressed keen interest to host a CEMR twinning event in 2010, which would signify a positive rapprochement with CEMR’s work. Association of Polish Counties Mr PORAWSKI indicated that his association had good cooperation at national level with the Association of Counties. He proposed to contact the colleagues to encourage a more regular settlement of their fees to CEMR. The secretariat considered that it was worth taking into account that, overall, this Association had settled a reasonable amount of their membership fees over the recent years. Swiss section of CEMR The SECRETARY GENERAL recalled that this association had recently changed leadership and that CEMR was hoping to have a meeting before the end of the year with the new Secretary General, including a discussion of financial matters. He further indicated that an event was due to be organised to mark the 60th anniversary of CEMR (2011) which could be, at least in part, organised in Switzerland in partnership with the Swiss colleagues.

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Partial settlements in the recent period were also noted from the National Association of Portuguese Municipalities. The members of the Committee agreed that the situations of particular concern regarding non settlement of fees should be indicated to the Policy Committee during their next meeting. Following remarks by Mr BUCCI on the importance of taking into account the diverse situations of CEMR’s membership, the SECRETARY GENERAL recalled that CEMR was due in 2010 to open a reflection process on the future of the organisation; the Financial Management Committee could request that this include a financial dimension. The members agreed that the best method at this stage was to continue to debate any difficult situations or particular requests on a case-by-case basis - with the association concerned and within the Financial Management Committee – and that the Committee should continue to indicate any particular problems to the Policy Committee. House of Cities, Municipalities and Regions in Brussels

The SECRETARY GENERAL recalled the situation of the unoccupied part of a unit in the House for which

NAMRB had initially contracted a lease. As it has not yet been possible to find a tenant to replace the NAMRB, CEMR has had to cover most of the costs of this unit from its own budget in 2008 and 2009.

The Committee noted moreover that roughly one half of the occupants of the House were currently in

arrears with payment to CEMR, leading to direct risks for CEMR’s budget. During the debate that followed, several members expressed views, including: Mr ZARAGOZA, who

expressed concern at the risks CEMR faced in this matter: Mr LEITERMANN, who underlined the importance of the House’s existence: Cllr KEYMER, who proposed that CEMR increase the amounts of guarantees requested from sub-letters.

Following the exchange of views, and based on the generally expressed concern about the risks to

which CEMR was exposed in case of unpaid rent/charges in relation to the House, the Financial Management Committee agreed to put forward the following recommendations, proposed by the Chair and Vice-Chair, to the Policy Committee:

At the end of the 9 year lease, consider a new arrangement vis-à-vis relations between the

landlord, CEMR and tenants (eg. CEMR could create a sort of property company); In the meantime, that CEMR continue to seek a new tenant; That CEMR set up a reserve fund in case of difficulties; That CEMR communicate further to NAMRB the extent of the financial problem that has

developed. In relation to the first recommendation, Ms ARRESTAT underlined that it would not be feasible to seek to

establish direct landlord-individual tenant relations. Based on the experience of setting up the common House, it appeared highly unlikely that any landlord would accept such a complex arrangement (involving some 20 separate rental agreements).

Responding to a question from Mr ZARAGOZA, the SECRETARY GENERAL indicated that the fee settled in

relation to the General Assembly (in agreement with the President, First Vice-President and Chair of the Financial Management Committee) corresponded to the honorarium for the special hour-long lecture by Jeremy Rifkin. Mr CHAILLOU considered that it could be useful to receive a balance sheet on CEMR’s expenses related to the General Assembly.

5. PRE-DRAFT 2010 BUDGET

The CHAIR presented the pre-draft 2010 budget, underlining that this would imply a decrease in the

budget for “activities”. Given the current climate of international financial and economic crisis, the CHAIR

underlined that it would be important to take into consideration the difficulties that many members might face.

During the debate, the SECRETARY GENERAL indicated that the secretariat’s first proposal would allow

the foreseen rate of inflation to be covered. Mr LEITERMANN expressed support for the secretariat’s proposal. Cllr KEYMER requested that a second option be proposed to the Policy Committee including a total freeze on all members’ fees at the 2009 level. Mr CHAILLOU indicated the difficulties faced in the AFCCRE’s budgetary planning for the next year. He particularly underlined his concern regarding

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questions of the right balance, given that the secretariat’s first draft proposed decreases in budgets for activities, and increases in the budgets for personnel, office rent and other office costs.

On these points, the SECRETARY GENERAL underlined that rent for the Brussels office rises every year by

law. Apparent increase in personnel budgets simply implied maintaining current personnel, as Belgian law may require salary raises. A margin had also been foreseen relating to the recruitment of a new Secretary General. He further underlined the link between personnel costs and possibilities for the organisation’s activities.

Following the debate, the CHAIR proposed, and the Committee agreed, that two options should be

proposed for decision by the Policy Committee: the first draft presented, plus a new option with a freeze on all members’ fees at the 2009 level. The CHAIR underlined that when presenting the two options, the secretariat should clearly illustrate the different related implications for CEMR.

6. MATTERS ARISING - UNION OF MUNICIPALITIES OF TURKEY

A brief debate took place on the state of the discussions with the UMT and UCLG’s Middle East and

West Asia regional section regarding potential future membership possibilities for the former within CEMR.

As no further matters were raised, Chair SKARD closed the meeting.

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Document 2.2 For information

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FOLLOW UP ON DECISION AND RECOMMANDATIONS OF THE FINANCIAL MANAGEMENT COMMITTEE 18 SEPTEMBER 2009

DECISION / RECOMMANDATION FOLLOW-UP

2008 ACCOUNTS The Financial Management Committee decided to propose to the Policy Committee: - to carry over the result of the financial year, i.e. a surplus of 2,608€; and - give full discharge to the President and the Secretaries General for 2008.

The Policy Committee (Berlin, 1st December 2009) approved this recommendation. The surplus of 2,608€ for the 2007 did not result in a reduction of the EC grant for the year 2008.

MEMBERSHIP FEES The Financial Management Committee debated questions regarding the fees of the following associations:

Association of Towns and Municipalities of the Republic of Srpska The Financial Management Committee had agreed that the association should settle, in the first phase of its recent affiliation with CEMR, 50% of the membership fees called for.

This settlement was fulfilled in 2010.

Association of Municipalities and Cities of the Federation of Bosnia and Herzegovina The Financial Management Committee had noted that the possibility of reducing the membership fee due in relation to the expenses of the ‘‘twinning seminar’’ organised during the year.

Compensation resulted in an income of 797€ (of the 1,082€ called for).

Association of Maltese Local Authorities The General Secretary had indicated that the association, that had not paid any membership fees for several years consecutively, appeared very interesting in hosting a twinning meeting in 2010, which would represent a positive rapprochement toward CEMR.

The association settled its 2010 membership fees as requested in the call for fees and indicated that it will continue to settle in the coming years.

Association of Polish Counties M. Porawski had proposed to contact his colleagues in order to prompt the settlement of their CEMR membership fees.

The first two instalments of 2009 were settled.

CEMR Swiss Section It was recalled that this association had changed leadership and that CEMR foresaw a meeting with the new General Secretary which would also give the occasion to discuss finances.

A meeting was held in March 2010. The proposals of CEMR Swiss Section (around 19,000€ for 2010) are detailed in point 5 below.

National Association of Portuguese Municipalities The Financial Management Committee had noted that the association carried out partial payments. In addition, the committee had decided that the particularly concerning situation of non-payment of membership fees should be notified to the Policy Committee at its next meeting.

The Portuguese association maintained their partial payments, and it has not been possible to organise a meeting with the Secretary General. The settlement of membership fees was not debated at large during the Policy meeting in Berlin.

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HOUSE OF CITIES, MUNICIPALITIES AND REGIONS IN BRUSSELS

Following this exchange of views and in lights of the concerns expressed by all parties with regards to risks for CEMR resulting from cases of non-payment of rent and charges in the House, the Financial Management Committee decided to formulate the following recommendations, proposed by the President and Vice-President, for the Policy Committee:

At the end of the lease, preview new terms and conditions between the owner, CEMR and tenants (i.e. CEMR could launch a type of property agency);

In the mean time, CEMR should seek new tenants;

CEMR should build up a reserve for protect itself from possible difficulties;

CEMR should keep NAMRB informed of the size of the financial problem it has confronted.

A meeting is foreseen in September 2010 with

Mr Jeremy Smith in view of preparing the consultation with legal advisors in autumn.

The association ZELS (FYROM) will take the

vacant module from October 2010. Reserves are not eligible to the EC grant. If

they are built up, they must represent a loss for the financial year concerned, failing this the grant will be cut by the sum of the reserve.

FINANCIAL PROJECTION AT 31/12/2009 The Financial Management Committee had taken note of the projection on 31 December 2009 which foresaw a balanced result.

The financial year was closed with a surplus of 310 euro. This issue will be the focus of the following item.

BUDGET 2010 The Financial Management Committee had decided to propose to the Policy Committee an open debate on two options, one of which foresaw a freeze on membership fees for 2010 at 2009 levels.

The Policy Committee (Berlin, 30 November and 1 December 2009) adopted the budgetary option foreseeing a freeze on membership fees.

MEMBERSHIP OF THE LOCAL AUTHORITIES OF TURKEY The Financial Management Committee had debated the possibility of a future membership to CEMR of this association.

Membership of the Union of Turkish Municipalities was validated by the Policy Committee in Oslo (3 – 4 June 2010).

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Document 3.1 For decision

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Document 3.2 For information

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COUNCIL OF EUROPEAN MUNICIPALITIES AND REGIONS

15, rue de Richelieu 75001 Paris

Auditor’s special report on regulated agreements and commitments with related parties

Year ended December 31, 2009

This is a free translation into English of the Auditors’ special report on regulated agreements and commitments with related parties that is issued in the French language and is provided solely for the convenience of English speaking readers. This report on regulated agreements and commitments should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. It should be understood that the agreements reported on are only those provided by the French Commercial Code and that the report does not apply to those related party transactions described in IAS 24 or other equivalent accounting standards.

In accordance with our appointment as auditors of the COUNCIL OF EUROPEAN MUNICIPALITIES AND REGIONS, we hereby report on regulated agreements and commitments with related parties.

The terms of our engagement do not require us to identify such other agreements, if any, but to communicate to you, based on information provided to us, the principal terms and conditions of those agreements brought to our attention, without expressing an opinion on their usefulness and appropriateness. It is your responsibility, pursuant to Article R.612-6 of the French Commercial Code, to assess the interest involved in respect of the conclusion of these agreements for the purpose of approving them.

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COUNCIL OF EUROPEAN MUNICIPALITIES AND REGIONS 3/ 8

1. With A.I.C.C.R.E.

People concerned

Mrs Mercedes BRESSO

Nature, object and methods

The CEMR perceived:

- Membership fees amounting to € 207.743,32,

- A refund of rents and charges offices expenses in the amount of € 15.471,21,

- Funds for the PLATFORM project amounting to € 6.000,00.

The CEMR paid:

‐ Funds for partial reimbursement of co-financing project implementation of the European Charter on the equality of men and women amounting to € 221,88,

‐ A refund of travel expenses on the PLATFORM project amounting to € 2.324,94.

2. With Association des Pouvoirs Locaux et Régionaux de Finlande

People concerned

M. Markku ANDERSON


The CEMR perceived:

‐ Membership fees amounting to € 43.628,00,

‐ A refund of rents and charges offices expenses in the amount of € 51.540,12.

The CEMR paid:


‐ Funds for partial reimbursement of co-financing project of the “Dialogue Social” amounting to € 538,61.

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3. With Association Française du CCRE

People concerned

M. Louis LE PENSEC


The CEMR perceived:



The CEMR paid:


‐ Funds for partial reimbursement of co-financing project of the “Dialogue Social” amounting to € 103,17,

‐ A refund of travel expenses amounting to € 2.830,52.

4. With Association des Gouvernements Locaux

People concerned

Cllr Gordon KEYMER CBE


The CEMR perceived:

‐ Membership fees amounting to € 282.554,00,

‐ A refund of rents and charges offices expenses in the amount of € 45.832,23.

The CEMR paid:

‐ A refund of travel expenses amounting to € 635,62.

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5. With Advocacy International

People concerned

M. Jeremy SMITH


The CEMR paid to Advocacy International € 206.712,41 for working time.

6. With Association Suédoise des Pouvoirs Locaux et des Régions.

People concerned

Mr Anders KNAPE


The CEMR perceived:




7. With KEDKE

People concerned

Mr Nikitas KAKLAMANIS


The CEMR perceived:


- A refund of rents and charges offices expenses in the amount of € 25.716,86.

The CEMR paid:

- Funds for partial reimbursement of co-financing project of the “Dialogue Social” amounting to € 239,38.

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8. With C.Z.E.C.H.

People concerned

Mr Oldrich VLASAK


The CEMR perceived:

- Membership fees amounting to € 30.844,00.

The CEMR paid:

- A refund of meeting expenses in the amount of € 4.760,75.

9. With V.N.G.

People concerned

Mrs Annemarie JORRITSMA


The CEMR perceived:




The CEMR paid:

- A refund of meeting expenses in the amount of € 958,38,

- A refund of travel expenses in the amount of € 544,00.

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10. With C.G.L.U.

People concerned

M. Wolfgang SCHUSTER


The CEMR perceived:

- Funds for the PLATFORM project amounting to € 8.000,00,

- Working times for an amount of € 32.657,59,

- A refund of travel expenses of € 7.918,73,

- A refund of postage of € 39,11.

The CEMR:

- Transfers a contribution to CGLU for an amount of € 258.192,00,

- Paid travel expenses in the amount of € 894,35.

11. With F.E.M.P.

People concerned

M. Pedro CASTRO VAZQUEZ


The CEMR perceived:



The CEMR paid:

‐ A refund of travel expenses in the amount of € 734,00.

‐ Funds for partial reimbursement of co-financing project implementation of the European Charter on the equality of men and women amounting to € 55,96.

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12. With R.G.R.E.

People concerned

Dr. Wolfgang SCHUSTER et Mrs Barbel DIECKMANN


The CEMR perceived:


The CEMR paid:

‐ A refund of expenses in the amount of € 438,70.

13. With Association of Polish Counties

People concerned

Mrs Ligia KRAJEWSKA


The CEMR perceived:


Neuilly-sur-Seine, February 22, 2010

The statutory Auditor

Deloitte & Associés

Jean-Pierre VERCAMER

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Document 4 For decision

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REALISATION OF THE 2009 BUDGET This document presents the realisation of the budget 2009. It complements the certification document of the accounts for 2009 by the firm Deloitte, professional auditors of CEMR. The accounts found hereafter were audited on 6 July 2010by the Honorary Auditors of CEMR, who will present them to the Financial Management Committee. The members of the Financial Management Committee are invited to: Take note of and debate this document; Propose that the Policy Committee: Decide to carry over the results of the period, a surplus of 310 Euro; Give discharge to the President and Secretary General for the year 2009.

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REALISATION OF THE BUDGET AT 31 DECEMBER 2009

2008 2009

ACTUAL ACTUAL ACTUAL BUDGET

ACTUAL ACTUAL ACTUAL CEMR CONTR. TOTAL CEMR CEMR CONTR. TOTAL

WORKING FEES

1 911 662 1 911 662 Affiliation fees 2009 received 2 171 000 1 945 783 1 945 783

-288 113 -288 113 Transfers to UCLG -380 000 -255 292 -255 292

1 623 549 1 623 549 Net affiliation fees 2009 1 791 000 1 690 491 1 690 491

73 437 73 437 Affil. fees 2007-2008 received 115 599 115 599

-480 -480 Transfers to UCLG -2 900 -2 900

1 696 506 1 696 506 Net affiliation fees 1 791 000 1 803 190 1 803 190

230 000 230 000 EC grant 235 000 230 000 230 000

285 973 285 973 EC contracts 126 494 126 494

27 491 27 491 Contracts CEMR co-financing 11 820 11 820

13 511 13 511 Contracts Partners co-financing 52 646 52 646

30 000 30 000 Other contracts 21 500 21 500

30 000 30 000 General Assembly 15 000

32 695 32 695 Other working income 25 000 32 658 32 658

33 104 33 104 Release of provisions

19 973 58 316 78 289 Exceptional income

23 744 23 744 Income from previous years 1 039 7 214 8 253

2 039 174 442 139 2 481 312 TOTAL 2 066 000 2 088 387 198 174 2 286 561

WORKING EXPENDITURE 1 313 685 83 963 1 397 648 Salaries + social charges 1 369 000 1 406 509 85 262 1 491 770

197 456 197 456 Rent and service charges 200 000 221 207 221 207

208 724 18 446 227 170 Other office costs 220 000 165 088 4 558 169 646

17 608 49 873 67 481 Fees 28 666 5 635 34 301

94 731 51 651 146 382 Interpretation / Meeting costs 80 000 78 451 37 010 115 461

116 240 153 278 269 517 Travel costs 92 000 88 719 61 829 150 548

Political repres. - Rapporteurs 10 000

108 721 35 786 144 507 Communication 79 000 75 393 2 647 78 040

17 759 17 759 Depreciation and provisions 20 000 13 586 13 586

27 491 27 491 Contracts CEMR co-financing 11 820 11 820

5 500 5 500 Provisions

2 102 415 398 497 2 500 911 TOTAL 2 070 000 2 089 439 196 941 2 286 380

-63 240 43 642 -19 598 RESULT OF THE PERIOD -4 000 -1 052 1 233 181

FINANCIAL INCOME Exchange rate earnings

27 619 3 738 31 356 Income short-term investment 10 000 10 103 942 11 045

27 619 3 738 31 356 TOTAL 10 000 10 103 942 11 045

FINANCIAL CHARGES Exchange rate losses 37 37

7 716 1 434 9 149 Banking and financial charges 6 000 10 482 397 10 879

7 716 1 434 9 149 TOTAL 6 000 10 519 397 10 917

19 903 2 304 22 207 FINANCIAL RESULT 4 000 -416 545 128

2 066 793 445 877 2 512 668 TOTAL INCOME 2 076 000 2 098 490 199 117 2 297 606

2 110 131 399 931 2 510 060 TOTAL EXPENDITURE 2 076 000 2 099 958 197 339 2 297 297

43 337 45 946 2 608 TOTAL -1 468 1 778 310

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REALISATION OF THE 2009 BUDGET The period of 2009 closed with an overall surplus of € 310, corresponding to a deficit of € 1 468 for CEMR’s own budget and a surplus of € 1 778 for EC contracts. The total resources of CEMR’s own budget went from € 2 076 000 (voted budget) to € 2 098 490 (actual budget) – an increase of around 1% – the details of which are indicated below:

INCOME

Income from MEMBERSHIP FEES is detailed hereafter.

The amount of the OPERATING GRANT allocated to CEMR by the EC in 2009 was € 5 000 less than the amount included in the voted budget: It went from € 235 000 to € 230 000.

OTHER CONTRACTS (€ 21 500) corresponds to a settlement from Dexia (€ 20 000) under its partnership agreement with CEMR as well as to a settlement made by ICLEI (€ 1 500) towards the preparation of the 6th European Conference on Sustainable Cities (Dunkerque, May 2010).

OTHER WORKING INCOME (€ 32 658) corresponds to reimbursements from UCLG for time spent by CEMR staff on the world Organisation’s finances.

INCOME FROM PREVIOUS YEARS (€ 1 039) corresponds to the regularisation of an invoice disputed by CEMR since 2004.

FINANCIAL REVENUE (€ 11 045, of which € 10 103 are on CEMR’s own budget) indicates the remuneration of investments divested during the financial year. In addition, there are some latent potential capital gains in relation to ongoing investment which are not included in the financial year’s result, amounting to € 85 964.

In keeping with what was notified to the Financial Management Committee at its meeting on 18 September 2009, CEMR opted to forgo the settlement of the balance owed by the host city of the 2009 GENERAL ASSEMBLY. This was done in order to offset the additional costs incurred by Malmö as a result of the increased number of working languages used during the congress.

The income from EC CONTRACTS (€ 199 117) includes around € 12 000 corresponding to the co-financing by CEMR of the "Platform" contract.

It also includes the EC co-financing for different contracts, and in particular for the "Platform” contract (€ 121 274).

EXPENDITURE

The item SALARIES AND SOCIAL CHARGES (€ 1 406 509 excluding contracts) shows an increase of around € 37 000.

The item OFFICE RENT (€ 221 207) is higher than what was in the voted budget due to a vacancy of one of the cubicles in the House of Cities, Municipalities and Regions.

The items OTHER OFFICE COSTS and FEES (€ 193 754 in total) are lower than what was in the voted budget of € 220 000.

The items MEETING AND INTERPRETATION COSTS, TRAVEL COSTS and COMMUNICATION / PUBLICATIONS are slightly lower than what was in the voted budget.

The item DEPRECIATION/PROVISIONS is much lower than what was in the voted budget. The replacement of certain equipment is projected for the 2010 financial year.

The budget for the item POLITICAL REPRESENTATION /RAPPORTEURS was not used up.

Expenses relating to the item EC CONTRACTS (€ 197 339) correspond to the sums which were declared under different contracts involving CEMR participation.

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2009 AFFILIATION FEES CEMR MEMBERSHIP FEES The tables found hereafter show that the members of CEMR settled the amount of 1 803 190 euro during the 2009 financial year. This amount is higher than the net amount of affiliation fees in the budget (1 791 000 €) as a result of the settlement of membership fees due from previous years (Portugal and Israel in particular). MEMBERSHIP FEES TO UCLG The net sum of membership fees received for UCLG via CEMR amounted to 258 192 euro (including 2 900 euro corresponding to fees from previous years settled in 2009), which can be compared to the 288 593 euro received in 2008 and the 300 000 euro listed in the budget. BUDGETARY COMPARISON

CEMR UCLG TOTAL

I BUDGET

VOTED MEMBERSHIP FEES 1 875 000 380 000 2 255 000

PROVISIONS -84 000 -80 000 -164 000

NET BUDGET FOR 2009 1 791 000 300 000 2 091 000

II RECEIVED MEMBERSHIP FEES RECEIVED FOR 2009 1 681 032 253 950 1 934 982

MEMBERSHIP FEES RECEIVED FOR PREVIOUS YEARS 112 699 2 900 115 599

PROVISIONS 9 460 1 342 10 802

TOTAL RECEIVED IN 2009 1 803 190 258 192 2 061 382

III COMPARISON OF BUDGETED AND RECEIVED FEES FEES RECEIVED MINUS FEES BUDGETED 12 190 -41 808 -29 618

PERCENT RECEIVED 100.68% 86.06% 98.58%

36

MEMBERSHIP FEES : CEMR 2009 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED DUE 31/12/2009 PROVISIONED 2009

COTISATIONS : CCRE 2009 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2009 DU 31/12/2009 PROVISION 2009

AL Albanian Association of Municipalities 628 628 402 226

AT Österreichischer Städtebund 30 466 30 466 30 466

Österreichischer Gemeindebund 30 466 30 466 30 466

BA A. Municipalities/Cities Federation Bosnia Herzegovina 1 082 1 082 1 000 82

A. Municipalities/Towns Republic of Srpska 1 082 1 082 1 082 541

BE Union des Villes et Communes Belges 72 388 72 388 72 388

BG NAMRB 14 112 14 112 14 112

CH Association Suisse du CCRE 28 319 28 319 14 107 14 212

CY Union of Cyprus Municipalities 3 972 3 972 3 972

CZ Union of Towns and Communities of the Czech Rep. 28 223 28 223 28 223

DE Deutscher Landkreistag 24 538 24 538 24 538

Deutscher Städtetag 61 346 61 346 61 346

Städte und Gemeindebund 29 446 29 446 29 446

Rat der Gemeinden und Regionen Europas 130 054 130 054 130 054

DK LGDK 19 734 19 734 19 734

Danish Regions 19 734 19 734 19 734

EE Association of Estonian Cities 1 411 1 411 1 411

Association of Municipalities of Estonia 1 411 1 411 1 411

ES Federación Española de Municipios y Provincias 160 705 160 705 160 705

FI Association of Finnish Local and Regional Authorities 36 028 36 028 36 028

FR Association Française pour le CCRE 211 000 211 000 211 000

GR Central Union of Greek Municipalities and Communities 55 410 55 410 55 410

HR Croatian County Association 6 582 6 582

HU Hungarian Associations 28 223 28 223 28 223

IE Institute of Public Administration 2 135 2 135 2 135

Local Government Management Services Board 2 000 2 000

IL Union of Local Authorities in Israel 7 290 7 290 7 290

IS Association of Local Authorities in Iceland 2 276 2 276 2 276

IT AICCRE 209 410 209 410 139 607 69 803

LT Association of local authorities in Lithuania 8 467 8 467 8 467

LU Association des Villes et Communes Luxemb. 6 408 6 408 6 408

LV Union of local and Regional Governmnts of Latvia 5 645 5 645 5 645

MK As. of units of local self -gov. of Macedonia (ZELS) 1 675 1 675 1 675

MO Union of Municipalities of Montenegro 452 452 452

MT Maltese Association of Local Councils 1 787 1 787 1 787

NL VNG / IPO 107 913 107 913 107 913

NO Kommunenes Sentralforbund 48 963 48 963 48 963

PL Assoc. of Polish Cities 34 142 34 142 11 381 22 761

Assoc.of Polish Counties 15 174 15 174 10 116 5 058

PT Associaçao Nacional de Municipios Portugueses 45 362 45 362 15 120 30 242 4 213

RO Association of Romanian Communes (ACOR) 4 959 4 959 3 306 1 653

Association of Romanian Towns (AOR) 4 959 4 959 4 959

National Union of County Councils of Romania 4 959 4 959 4 959

Romanian Municipalities Association (AMR) 4 959 4 959 4 959

RS Standing conference of towns & municip. of Serbia 2 201 2 201 2 201

SI Assoc. of Municipalities and Towns of Slovenia 2 822 2 822 2 822

Assoc. of Municipalities of Slovenia 2 822 2 822 2 822

SE Swedish Association of Local Authorities and Regions 62 343 62 343 62 343

SK Assoc. of Towns and Communities of Slovakia 14 112 14 112 9 406 4 706 4 706

UA Association of Ukrainian cities 18 745 18 745 12 496 6 249

UK Local Government Association 232 800 232 800 232 800

TOTAL 1 842 561 1 851 143 1 681 032 170 108 9 460

RECEIVED 90.81% 9.19% 0.51%

C:\Documents and Settings\Dominique Arrestat\My Documents\2009\cloture 2009\RECU 2009

37

MEMBERSHIP FEES : UCLG 2009 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED DUE 31/12/2009 PROVISIONED 2009

COTISATIONS : CGLU 2009 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2009 DU 31/12/2009 PROVISION 2009

AL Albanian Association of Municipalities 187 187 120 67



BA A. Municipalities/Cities Federation Bosnia Herzegovina 276 276 276

A. Municipalities/Towns Republic of Srpska 276 276 276 69


BG NAMRB 708 708 708

CH Association Suisse du CCRE 8 531 8 531 8 531

CY Union of Cyprus Municipalities 500 500 500

CZ Union of Towns and Communities of the Czech Republic 2 621 2 621 2 621





DK Local Government Denmark 4 400 4 400 4 400

Danish Regions 4 400 4 400 4 400

EE Association of Estonian Cities 300 300 300

Association of Municipalities of Estonia 300 300 300





HR Croatian County Association 514 514


IE Institute of Public Adminstration

Local Government Management Services Board


IS Association of Local Authorities in Iceland 400 400 400

IT AICCRE 47 866 47 866 47 866

LT Association of local authorities in Lithuania 800 800 800

LU Association des Villes et Communes Luxemb. 741 741 741

LV Union of local and Regional Governmnts of Latvia 409 409 409

MK As. of units of local self -gov. of Macedonia (ZELS) 200 200 200


MT Maltese Association of Local Councils 210 210 210

NL VNG / IPO 20 700 20 700 20 700



Assoc.of Polish Counties 1 634 1 634 1 088 546

PT Associaçao Nacional de Municipios Portugueses 8 700 8 700 2 900 5 800 807

RO Association of Romanian Communes (ACOR) 820 820 546 274

Association of Romanian Towns (AOR) 820 820 820

National Union of County Councils of Romania 820 820 820

Romanian Municipalities Association (AMR) 820 820 820

RS Standing conference of towns & municip. of Serbia 429 429 429

SI Assoc. of Municipalities and Towns of Slovenia 341 341 341

Assoc. of Municipalities of Slovenia 341 341 341


SK Assoc. of Towns and Communities of Slovakia 1 400 1 400 934 466 466

UA Association of Ukrainian cities 2 959 2 959 1 972 987


TOTAL 379 342 379 856 253 950 125 904 1 342

RECEIVED 66.85% 33.15% 0.35%

C:\Documents and Settings\Dominique Arrestat\My Documents\2009\cloture 2009\RECU 2009

38

MEMBERSHIP FEES : CEMR 2008 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED PROVISION RECEIVED PROVISION OVERDUE

COTISATIONS : CCRE 2008 BUDGET TOTAL TOTAL APPELE TOTAL RECUA RECEVOIR

20082 009 A RECEVOIR 2009

EN RETARD DE

PAIEMENT

AL Albanian Association of Municipalities 628 628 628



BA A. Municipalities/Cities Federation Bosnia Herzegovina 1 082 1 082



BG NAMRB 12 271 12 271 12 271

CH Association Suisse du CCRE 27 494 27 494 13 747 4 601 4 601 13 747







DK LGDK 18 252 18 252 18 252

Danish Regions 18 252 18 252 18 252








IE Institute of Public Administration 2 073 2 073 2 073IE Institute of Public Administration 2 073 2 073 2 073

IL Union of Local Authorities in Israel 30 335 5 000 5 000 5 000


IT AICCRE 204 410 204 410 204 410 68 137 0






NL VNG / IPO 102 913 102 913 102 913


PL Assoc. of Polish Cities 43 147 30 680 30 680


PT Associaçao Nacional de Municipios Portugueses 41 783 41 783 41 783 24 776 180

RO Association of Romanian Communes (ACOR) 4 313 4 313 4 313







SK Assoc. of Towns and Communities of Slovakia 12 271 12 271 12 271

UA Association of Ukrainian cities 18 745 18 745 18 745

UK Local Government Association 227 800 227 800 227 800 31 332 31 332

YU Standing conference of towns & municip. of Serbia 2 001 2 001 2 001


TOTAL 1 804 391 1 750 776 1 721 641 35 933 133 846 180 29 135

https://mail.ccre.org/exchange/dominique.arrestat/Inbox/COTISATIONS 2007-2008d.EML/RECU 2008 MAJ 2009.xls/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/RECU 2008 MAJ 2009

39

MEMBERSHIP FEES : UCLG 2008 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED PROVISION RECEIVED PROVISION OVERDUE

COTISATIONS : CGLU 2008 BUDGET TOTAL TOTAL APPELE TOTAL RECUA RECEVOIR

20082 009 A RECEVOIR 2009

EN RETARD DE

PAIEMENT




BA A. Municipalities/Cities Federation Bosnia Herzegovina 69 69

A. Municipalities/Towns Republic of Srpska 69 69


BG NAMRB 704 704 704














FR Association Française pour le CCRE 54 962 54 962 27 481 27 481





IS Association of Local Authorities in Iceland 400 400 400

IT AICCRE 47 866 47 866 47 866






NL VNG / IPO 20 700 20 700 20 700




PT Associaçao Nacional de Municipios Portugueses 8 700 8 700 8 700

RO Association of Romanian Communes (ACOR) 748 748 748


National Union of County Councils of Romania 748 748 748







UK Local Government Association 48 477 48 477 48 477 6 668 6 668

YU Standing conference of towns & municip. of Serbia 387 387 387


TOTAL 380 135 380 273 288 113 6 668 6 668 92 161

https://mail.ccre.org/exchange/dominique.arrestat/Inbox/COTISATIONS 2007-2008d.EML/RECU 2008 MAJ 2009.xls/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/RECU 2008 MAJ 2009

40

MEMBERSHIP FEES : CEMR 2007

TOTAL BUDGET TOTAL CALLED TOTAL RECEIVEDTOTAL RECEIVED

2008

TOTAL RECEIVED

2009TO BE RECEIVED

AL Albanian Association of Municipalities 628 628




BG NAMRB 10 671 10 671 7 115 3 556









Danish Regions 17 427 17 427 17 427





FR Association des Maires de France 16 158

Association Française pour le CCRE 200 118 200 118 200 118






IT AICCRE 206 331 206 331 206 331 68 777





MT Maltese Association of Local Councils 1 549 1 549

NL VNG / IPO 97 913 97 913 97 913




PT Associaçao Nacional de Municipios Portugueses 41 409 41 409 41 409 12 606

RO Association of Romanian Communes (ACOR) 3 750 3 750 3 746





Assoc. of Municipalities of Slovenia 2 134 2 134





YU Standing conference of towns & municip. of Serbia 1 819 1 819 1 819


TOTAL 1 745 937 1 713 218 1 666 328 72 957 14 606 3 556

C:\Users\Dominique\Documents\CCRE\100216\Copie de RECU 2007 MAJ 2008 MAJ 2009

41

MEMBERSHIP FEES : UCLG 2007

TOTAL BUDGET TOTAL CALLED TOTAL RECEIVEDTOTAL RECEIVED

2008

TOTAL RECEIVED

2009TO BE RECEIVED

AL Albanian Association of Municipalities 171 171




BG NAMRB 700 700 466 234

CH Association Suisse du CCRE 7 700 7 700











ES Federación Española de Municipios y Provincias 31 900 31 900 31 900 10 634


FR Association des Maires de France 4 102

Association Française pour le CCRE 50 798 50 798 25 399




IL Union of Local Authorities in Israel 6 900 6 900

Association of Local Authorities in Iceland 400 400 400IS Association of Local Authorities in Iceland 400 400 400

IT AICCRE 25 000 25 000

ANCI





MT Maltese Association of Local Councils 200 200

NL VNG / IPO 20 700 20 700 20 700





RO Association of Romanian Communes (ACOR) 675 675 672


National Union of County Councils of Romania 675 675 675 450



Assoc. of Municipalities of Slovenia 300 300





YU Standing conference of towns & municip. of Serbia 346 346 346 346


TOTAL 329 501 350 401 309 494 12 390 2 900 234

C:\Users\Dominique\Documents\CCRE\100216\Copie de RECU 2007 MAJ 2008 MAJ 2009

42

CEMR PROFIT AND LOSS ACCOUNT OVER FOUR YEARS

EUR EUR EUR EUR 31.12.09 31.12.08 31.12.07 31.12.06 WORKING INCOME Affiliation fees received for current year 1 945 783 1 911 662 1 884 879 1 812 375 Affiliation fees transferred to UCLG -255 292 -288 113 -306 114 -274 771 Net affiliation fees for current year 1 690 491 1 623 549 1 578 765 1 537 604 Affiliation fees received for previous years 115 599 73 437 117 827 154 941 Affiliation fees transferred to UCLG -2 900 -480 -28 710 -2 900 Net affiliation fees 1 803 190 1 696 506 1 667 882 1 689 645 EC grant 230 000 230 000 210 000 210 535 EC contracts 126 494 285 973 226 738 168 418 Co-financing contracts - CEMR 11 820 27 491 202 280 22 250 Co-financing contracts - Partners 52 646 13 511 Other contracts 21 500 30 000 23 750 19 508 Innsbruck General Assembly 35 220 Ferrara Twinning Congress -17 632 Malmö General Assembly 30 000 Other working income 32 658 32 695 33 452 97 862 Release of provisions 33 104 18 000 Exceptional income 78 289 40 605 Income from previous years 8 253 23 744 TOTAL 2 286 561 2 481 312 2 364 101 2 284 411 WORKING EXPENDITURE Salaries and social charges 1 491 770 1 397 648 1 474 922 1 452 000 Rent and service charges 221 207 197 456 187 929 154 993 Moving costs 17 063 Other office costs 169 646 227 170 186 930 190 593 Fees 34 301 67 481 23 469 68 842 Studies 3 158 Interpretation and meeting costs 115 461 146 382 165 495 130 356 Missions, receptions and representation 150 548 269 517 193 288 184 875 Publications/communication 78 040 55 916 110 296 102 211 Twinning website 88 591 EC contracts 11 820 27 491 2 002 Depreciation 13 586 17 759 15 217 9 927 Provisions 5 500 TOTAL 2 286 380 2 500 911 2 376 611 2 296 954 WORKING INCOME AND EXPENDITURE 181 -19 598 -12 510 -12 544 FINANCIAL INCOME Exchange rate earnings Income from short term investments 11 045 31 356 24 049 15 465 TOTAL 11 045 31 356 24 049 15 465 FINANCIAL CHARGES Exchange rate losses 37 54 Banking and financial charges 10 879 9 149 9 687 6 820 TOTAL 10 917 9 149 9 687 6 874 FINANCIAL RESULT 128 22 207 14 362 8 591

TOTAL INCOME 2 297 606 2 512 668 2 388 150 2 299 875 TOTAL EXPENDITURE 2 297 297 2 510 060 2 386 298 2 303 828 TOTAL 310 2 608 1 852 -3 953

43

44


Document 5 For information

c:\users\dominique arrestat\documents\2010\cgf 0906\05 resultat 1007 en.doc

RESULT AT 31 JULY 2010 AND PROJECTION UNTIL 31 DECEMBER 2010

This document presents the realisation of the budget for the first seven months of 2010, as well as the projected result at 31 December 2010.

The members of the Financial Management Committee are invited to: Take note of and debate this document.

Forecasts for the 2010 period MEMBERSHIP FEES The tables showing income from 2008, 2009 and 2010 membership fees at 31 July 2010 are attached. For 2010, 76% of the fees due to date to CEMR and 68% due to UCLG, have been received. This represents a deterioration compared to previous years (91% of fees due to CEMR and 69% due to UCLG should have been received). All members in arrears received a written reminder on 19 May 2010. In addition, amounts corresponding to previous years were received from AICCRE (70K), ANMP (13K), and Association of Polish Cities (25K), as well as settlements from AFCCRE and AICCRE to UCLG for 2009 (25K each). Given the expected contribution from ASCCRE (see below), the projection at the end of the period foresees that membership fee income should be on budget. The associations which have not regularly settled their membership fees over the past three years are the following:

45

2007 2008 2009

FEES TO CEMR ONLY TOTAL CALLED

TOTAL RECEIVED

BALANCE TOTAL

CALLED TOTAL

RECEIVED BALANCE

TOTAL CALLED

TOTAL RECEIVED

BALANCE

Albanian Association of Municipalities

628 -628 628 -628 628 402 -226

A. Munic./Cities Federation Bosnia Herzegovina

1 082 -1 082 1 082 797 -285

A. Municipalities/Towns Republic of Srpska

1 082 541 -541 1 082 541 -541

Union of Local Authorities in Israel

2 000 2 000 5 000 5 000 7 290 -7 290

Maltese Association of Local Councils

1 549 -1 549 1 592 -1 592 1 787 -1 787

Assoc.of Polish Counties 12 543 12 543 13 636 4 545 -9 091 15 174 10 116 -5 058

Associaçao Nacional de Municipios Portugueses

41 409 41 409 41 783 41 783 45 362 28 061 -17 301

IPA (Ireland) 2 040 2 040 2 073 2 073 2 135 -2 135

Association suisse du CCRE

27 061 13 523 -13 538 27 494 13 747 13 747 28 319 14 107 -14 212

Association of Romanian Communes (ACOR)

3 750 3 746 -4 4 313 4 313 4 959 3 306 -1 653

Association of Ukrainian cities

18 745 18 745 18 745 18 745 18 745 12 496 -6 249

The Albanian Association of Municipalities settled 60% of its 2010 fee so far (372 € out of 628 € to CEMR). The Association of Municipalities and Cities of the Federation of Bosnia and Herzegovina settled most of its fee in 2009 (797 € out of 1 082 € to CEMR) and settled its first instalment for 2010. In Oslo early June 2010, Ms Vesna Travljanin, Director of the association, informed that a second payment will be made shortly. The Association of Municipalities and Towns of Republic of Srpska requested a facility to allow the association to settle, in a first stage, 50% of the called fee (in 2008 and 2009, 541 € instead of 1 082€, which were duly settled), and then to progressively get up to date. The Financial Management Committee decided to agree on this proposal. No fee was settled to date for 2010. The Union of Local Authorities in Israel (ULAI) has gotten up to date for the years 2007 and 2008. No fee was settled in 2009, but the first two instalments for 2010 have been settled. The Local Councils’ Association of Malta has settled its fees for 2010 so far, and informed that this will continue for the next years. The Association of Polish Counties settled its full fees in 2007, one instalment in 2008, two instalments in 2009, and is up to date for 2010. The National Association of Portuguese Municipalities (ANMP) made a monthly settlement of 2 600 €, getting up to date for the year 2008 and settling partially the year 2009. IPA (Ireland) did not settle its fee in 2009, but is up to date in 2010. CEMR’s Swiss Association (ASCCRE) new leadership have proposed to settle some 19 000 € in 2010, and is expecting to increase this amount by 4 000 € in 2011 in order to progressively catch up with its fee. The Financial Management Committee is invited to give its views on this proposal.

The Association of Ukrainian Cities sent an email to the secretariat on 31 December 2009, informing that they will not settle the last instalment of 2009, and that the settlements for 2010 were uncertain. They confirmed in April 2010 that their financial situation is very difficult, and that they will keep us informed of the development, in the hope of settling some fees at a later date. This situation is rather worrying, firstly because of the amount of fees concerned (18 745 €), and also in view of the next meeting of the Secretaries General in Kyiv in September. However, the Association guaranteed that they will be able to host the meeting as planned. All members in arrears received a written reminder on 19 May 2010. A second reminder will be sent in October, reminding the rules for voting rights at the next Policy Committee in Luxembourg. In the meantime, members in arrears are reminded of their due when we meet them at the occasion of various meetings.

46

OTHER INCOME The EC confirmed that 240 000 € are granted to CEMR in 2010. We are in discussions with DEXIA for a new grant of 20 000 €. The draft agreement with CADIZ (to be signed shortly) will provide 16 000 € to be settled to CEMR in 2010, and an equivalent amount in 2011. The amount to be settled in 2012 will depend on the number of paying delegates (16€/delegate). In addition, time spent working on the finances of UCLG should amount to 30 000 € at the end of the period (instead of 20 000 € budgeted). EXPENSES The main variations in budget are the following:

- SALARIES should remain below budget, due

1. to departure of the head of communication, and subsequent reorganisation of the department on one hand, and

2. to time spent and reimbursed on contracts, on the other hand;

- FEES will increase the ‘other office costs’ budget, in reason of

1. the hiring of a consultant for the reflection process, and 2. the appeal of the European Commission for the MED URBS case before the Court

of Brussels (memoire sent in August);

- MEETING COSTS and COMMUNICATION COSTS are well below budget to date, but forecast of activities show that they will reach the amount voted by the end of the financial year;

- TRAVEL COSTS are above budget. It is proposed to raise the budget for travel from 92 000 € (voted) to 110 000 €, to be compensated for by savings on salaries and depreciation;

- DEPRECIATION should reach 15 000 € at year end, instead of 20 000 € voted. The other items under expenses are in line with the voted budget. If the main membership fees are settled as expected, we anticipate a balanced outcome at the end of the financial year.

47

Contracts INCOME The EC settlements expected for this financial year correspond to amounts to be received for the contracts PLATFORMA (85K) and the contract ‘Which twinning for which Europe?’ (95K). Other contracts include at year end: Covenant of Mayors (leader Energie Cités) 13K + ADDME (leader City of Rome) 13K + European Charter on development cooperation in support of local governance (French ministry of FOREIGN affairs 52K. CEMR cofinancing concerns PLATFORMA. Partners cofinancing concerns the twinning contract (10K) and PLATFORMA (82 K). All amounts above will need to be readjusted if the actions foreseen are less costly than anticipated. EXPENSES Salaries represent time spent by CEMR staff on EU contracts. Other expenses represent primarily costs of reimbursements of travel costs for meetings and conferences organised under different contracts. We also anticipate a balanced outcome at the end of the financial year on contracts.

House of Cities, Municipalities and Regions in Brussels

The table enclosed in annex demonstrates that reimbursements concerning the rent and charges for the House in Brussels still have to improve. Some concerns remain for the office shared by Bulgaria and Poland. However, ZELS (FYROM) have expressed interest in renting this space as from 1st October 2010. We are currently preparing the sub-lease documents.

48

RESULT AT END JULY 2010AND ANTICIPATED OUTCOME AT 31 DECEMBER 2010

€ BUDGET 31.07.10 31.07.10 31.07.10 31.12.10 31.12.10 31.12.10

2010 CEMR CONTR. TOTAL CEMR CONTR. TOTAL

(VOTED)

WORKING INCOME CEMR

Affiliation fees 2 169 000 1 117 430 1 117 430 2 070 000 2 070 000

Transfers to UCLG -382 000 -172 628 -172 628 -382 000 -382 000

Net aff iliation fees 1 787 000 944 802 944 802 1 688 000 1 688 000

Affiliation fees received previous years 158 872 158 872 160 000 160 000

Transfers to UCLG -55 266 -55 266 -58 000 -58 000

Net affiliation fees 1 787 000 1 048 408 1 048 408 1 790 000 1 790 000

EC grant 240 000 192 000 192 000 240 000 240 000

EC contracts 74 770 74 770 179 000 179 000

Contracts co-f inancing - CEMR 12 000 12 000

Contracts co-f inancing - Partners 64 500 64 500 92 000 92 000

Other contracts 41 554 41 554 79 000 79 000

ICLEI 3 500 3 500 3 500 3 500

Dexia 20 000 10 000 10 000

General Assembly 16 000 16 000 16 000

Other w orking income 20 000 25 963 25 963 30 000 30 000

Release of provision NEST 5 500 5 500 5 500 5 500

Exceptional income

Income from previous years

TOTAL 2 083 000 1 269 871 186 324 1 456 195 2 089 500 367 500 2 457 000

WORKING EXPENDITURE

Salaries + social charges 1 349 000 741 514 74 791 816 305 1 330 000 120 000 1 450 000

Rent and service charges 220 000 114 586 114 586 201 000 201 000

Rent and charges Bulgaria Poland 18 656 18 656 19 000 19 000

Other off ice costs 220 000 100 091 2 853 102 944 184 000 24 000 208 000

Fees 17 774 17 774 48 000 48 000

Interpretation and meeting costs 80 000 16 251 17 571 33 822 80 000 68 000 148 000

Travel costs 92 000 63 077 52 742 115 819 110 000 104 000 214 000

Rapporteurs 5 000 5 000 5 000

Publications/communication 79 000 25 085 2 542 27 628 79 000 31 000 110 000

Depreciation 20 000 8 983 8 983 15 000 15 000

Contracts CEMR cofinancing 12 000 12 000 12 000

Contracts partners cofinancing 15 000 15 000

Unforecast 10 000 5 500 5 500

TOTAL 2 087 000 1 106 017 150 499 1 256 516 2 083 000 367 500 2 450 500

WORKING INCOME AND EXPENDITURE -4 000 163 853 35 825 199 679 6 500 6 500

FINANCIAL INCOME

Exchange rate earnings

Income from short-term investment 10 000 1 406 1 406 4 000 4 000

TOTAL 10 000 1 406 1 406 4 000 4 000

FINANCIAL CHARGES

Exchange rate losses

Banking and f inancial charges 6 000 5 925 302 6 227 10 500 10 500

TOTAL 6 000 5 925 302 6 227 10 500 10 500

FINANCIAL RESULT 4 000 -4 519 -302 -4 821 -6 500 -6 500

TOTAL INCOME 2 093 000 1 271 277 186 324 1 457 600 2 093 500 367 500 2 461 000

TOTAL EXPENDITURE 2 093 000 1 111 943 150 800 1 262 743 2 093 500 367 500 2 461 000

TOTAL 159 334 35 524 194 858

49

MEMBERSHIP FEES : CEMR 2010 TOTAL BUDGET TOTAL CALLED DUE TO DATE TOTAL RECEIVED OVERDUE

COTISATIONS : CCRE 2010 BUDGET TOTAL TOTAL APPELE DU A CE JOUR TOTAL RECU EN RETARD

AL Albanian Association of Municipalities 628 628 418 372 46

AT Österreichischer Städtebund 30 466 30 466 20 310 20 310

Österreichischer Gemeindebund 30 466 30 466 20 310 20 310

BA A. Municipalities/Cities Federation Bosnia Herzegovina 1 082 1 082 720 360 360

A. Municipalities/Towns Republic of Srpska 1 082 1 082 720 720

BE Union des Villes et Communes Belges 72 388 72 388 48 258 48 258

BG NAMRB 14 112 14 112 9 408 14 112 -4 704


CY Union of Cyprus Municipalities 3 972 3 972 2 648 2 648

CZ Union of Towns and Communities of the Czech Rep. 28 223 28 223 18 814 18 814

DE Rat der Gemeinden und Regionen Europas 245 384 245 384 163 588 163 588

DK LGDK 19 734 19 734 13 156 13 156

Danish Regions 19 734 19 734 13 156 19 734 -6 578




FI Association of Finnish Local and Regional Authorities 36 028 36 028 24 018 24 018

FR Association Française pour le CCRE 211 000 211 000 140 666 70 334 70 332

GR Central Union of Greek Municipalities and Communities 55 410 55 410 36 940 36 940

HU Hungarian Associations 28 223 28 223 18 814 18 814

HR Croatian County Association 6 582 6 582 4 388 4 388

IE Institute of Public Administration 2 135 2 135 1 422 1 422

Local Government Management Services Board 2 000 2 000 1 332 666 666


A i ti f L l A th iti i I l d 2 276 2 276 1 518 1 518IS Association of Local Authorities in Iceland 2 276 2 276 1 518 1 518

IT AICCRE 209 410 209 410 139 606 139 606

LT Association of local authorities in Lithuania 8 467 8 467 5 644 8 466 -2 822

LU Association des Villes et Communes Luxemb. 6 408 6 408 4 272 6 408 -2 136

LV Union of local and Regional Governmnts of Latvia 5 645 5 645 3 762 5 645 -1 883

MK As. of units of local self -gov. of Macedonia (ZELS) 1 675 1 675 1 116 1 675 -559

MO Union of Municipalities of Montenegro 452 452 300 300

MT Maltese Association of Local Councils 1 787 1 787 1 190 1 190

NL VNG / IPO 107 913 107 913 71 942 71 940 2

NO Kommunenes Sentralforbund 48 963 48 963 32 642 32 640 2




RO Association of Romanian Communes (ACOR) 4 959 4 959 3 306 1 653 1 653

Association of Romanian Towns (AOR) 4 959 4 959 3 306 2 500 806

National Union of County Councils of Romania 4 959 4 959 3 306 3 306

Romanian Municipalities Association (AMR) 4 959 4 959 3 306 3 306

RS Standing conference of towns & municip. of Serbia 2 201 2 201 1 466 2 201 -735

SI Assoc. of Municipalities and Towns of Slovenia 2 822 2 822 1 880 1 882 -2

SE Swedish Association of Local Authorities and Regions 62 343 62 343 41 562 41 562

SK Assoc. of Towns and Communities of Slovakia 14 112 14 112 9 408 9 408

TR Union of Municipalities of Turkey 21 761 10 880 10 880 10 880


UK Local Government Association 232 800 232 800 155 200 155 200

TOTAL 1 848 320 1 870 081 1 243 064 944 802 309 142

RECEIVED 51% 76%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2010

50

MEMBERSHIP FEES : UCLG 2010 TOTAL BUDGET TOTAL CALLED DUE TO DATE TOTAL RECEIVED OVERDUE

COTISATIONS : CGLU 2010 BUDGET TOTAL TOTAL APPELE DU A CE JOUR TOTAL RECU EN RETARD




BA A. Municipalities/Cities Federation Bosnia Herzegovina 276 276 184 92 92



BG NAMRB 712 712 474 712 -238


CY Union of Cyprus Municipalities 500 500 332 332

CZ Union of Towns and Communities of the Czech Republic 2 682 2 682 1 788 1 788

DE Rat der Gemeinden und Regionen Europas 57 800 57 800 38 534 38 534

DK Local Government Denmark 4 400 4 400 2 932 2 932

Danish Regions 4 400 4 400 2 932 4 400 -1 468

EE Association of Estonian Cities 300 300 200 200

Association of Municipalities of Estonia 300 300 200 200





HU Hungarian Associations 2 623 2 623 1 748 1 748HR Croatian County Association 514 514 342 342




IS Association of Local Authorities in Iceland 401 401 266 266

IT AICCRE 47 866 47 866 31 910 31 910

LT Association of local authorities in Lithuania 800 800 534 800 -266

LU Association des Villes et Communes Luxemb. 761 761 508 761 -253

LV Union of local and Regional Governmnts of Latvia 414 414 276 414 -138

MK As. of units of local self -gov. of Macedonia (ZELS) 206 206 138 206 -68


MT Maltese Association of Local Councils 215 215 144 144

NL VNG / IPO 20 700 20 700 13 800 13 800

NO Kommunenes Sentralforbund 7 562 7 562 5 042 5 042




RO Association of Romanian Communes (ACOR) 893 893 594 297 297

Association of Romanian Towns (AOR) 893 893 594 450 144


Romanian Municipalities Association (AMR) 893 893 594 594

RS Standing conference of towns & municip. of Serbia 470 470 312 470 -158

SI Assoc. of Municipalities and Towns of Slovenia 362 362 240 240



TR Union of Municipalities of Turkey



TOTAL 382 257 382 257 254 819 172 628 82 191

RECEIVED 45% 68%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2010

51

MEMBERSHIP FEES : CEMR 2009 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED 2009 PROVISIONED 2009 RECEIVED 2010 TOTAL RCVD DUE TO DATE

COTISATIONS : CCRE 2009 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2009 PROVISION 2009RECU 2010

REGULARISATIONTOTAL RECU DU A CE JOUR




BA A. Municipalities/Cities Federation Bosnia Herzegovina 1 082 1 082 1 000 -203 797 285

A. Municipalities/Towns Republic of Srpska 1 082 1 082 541 541 541 541


BG NAMRB 14 112 14 112 14 112 14 112

CH Association Suisse du CCRE 28 319 28 319 14 107 14 107 14 212


CZ Union of Towns and Communities of the Czech Rep. 28 223 28 223 28 223 28 223

DE Deutscher Landkreistag 24 538 24 538 24 538 24 538

Deutscher Städtetag 61 346 61 346 61 346 61 346

Städte und Gemeindebund 29 446 29 446 29 446 29 446

Rat der Gemeinden und Regionen Europas 130 054 130 054 130 054 130 054

DK LGDK 19 734 19 734 19 734 19 734

Danish Regions 19 734 19 734 19 734 19 734

EE Association of Estonian Cities 1 411 1 411 1 411 1 411

Association of Municipalities of Estonia 1 411 1 411 1 411 1 411





HR Croatian County Association 6 582 6 582 6 582



Local Government Management Services Board 2 000 2 000 2 000


IS Association of Local Authorities in Iceland 2 276 2 276 2 276 2 276

IT AICCRE 209 410 209 410 139 606 69 804 209 410

LT Association of local authorities in Lithuania 8 467 8 467 8 467 8 467

LU Association des Villes et Communes Luxemb. 6 408 6 408 6 408 6 408

LV Union of local and Regional Governmnts of Latvia 5 645 5 645 5 645 5 645

MK As. of units of local self -gov. of Macedonia (ZELS) 1 675 1 675 1 675 1 675



NL VNG / IPO 107 913 107 913 107 913 107 913


PL Assoc. of Polish Cities 34 142 34 142 11 381 22 761 34 142

Assoc.of Polish Counties 15 174 15 174 10 116 10 116 5 058

PT Associaçao Nacional de Municipios Portugueses 45 362 45 362 15 120 4 213 15 458 30 578 14 784

RO Association of Romanian Communes (ACOR) 4 959 4 959 3 306 3 306 1 653

Association of Romanian Towns (AOR) 4 959 4 959 4 959 4 959



RS Standing conference of towns & municip. of Serbia 2 201 2 201 2 201 2 201

SI Assoc. of Municipalities and Towns of Slovenia 2 822 2 822 2 822 2 822



SK Assoc. of Towns and Communities of Slovakia 14 112 14 112 9 406 4 706 4 706 14 112

UA Association of Ukrainian cities 18 745 18 745 12 496 12 496 6 249


TOTAL 1 842 561 1 851 143 1 681 031 9 460 113 067 1 794 098 57 042

RECEIVED 97% 3%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2009 MAJ 2010 03/08/2010

52

MEMBERSHIP FEES : UCLG 2009 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED PROVISIONED 2009 RECEIVED 2010 TOTAL RCVD DUE TO DATE

COTISATIONS : CGLU 2009 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2009 PROVISION 2009RECU 2010

REGULARISATIONTOTAL RECU DU A CE JOUR




BA A. Municipalities/Cities Federation Bosnia Herzegovina 276 276 203 203 73

A. Municipalities/Towns Republic of Srpska 276 276 69 69 69 207


BG NAMRB 708 708 708 708



CZ Union of Towns and Communities of the Czech Republic 2 621 2 621 2 621 2 621






Danish Regions 4 400 4 400 4 400 4 400







HR Croatian County Association 514 514 514






IT AICCRE 47 866 47 866 47 866

LT Association of local authorities in Lithuania 800 800 800 800

LU Association des Villes et Communes Luxemb. 741 741 741 741

LV Union of local and Regional Governmnts of Latvia 409 409 409 409

MK As. of units of local self -gov. of Macedonia (ZELS) 200 200 200 200



NL VNG / IPO 20 700 20 700 20 700 20 700


PL Assoc. of Polish Cities 3 677 3 677 1 225 2 452 3 677

Assoc.of Polish Counties 1 634 1 634 1 088 1 088 546

PT Associaçao Nacional de Municipios Portugueses 8 700 8 700 2 900 807 2 962 5 862 2 838

RO Association of Romanian Communes (ACOR) 820 820 546 546 274

Association of Romanian Towns (AOR) 820 820 820 820



RS Standing conference of towns & municip. of Serbia 429 429 429 429




SK Assoc. of Towns and Communities of Slovakia 1 400 1 400 934 466 466 1 400

UA Association of Ukrainian cities 2 959 2 959 1 972 1 972 987


TOTAL 379 342 379 856 253 950 1 342 31 608 285 558 94 298

RECEIVED 75% 25%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2009 MAJ 2010 03/08/2010

53

MEMBERSHIP FEES : CEMR 2008 TOTAL BUDGET TOTAL CALLEDTOTAL RECEIVED

2008PROVISIONED 2008 RECEIVED 2009 PROVISIONED 2009 RECEIVED 2010 TOTAL RCVD DUE TO DATE

COTISATIONS : CCRE 2008 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2008 PAR 2008 RECU 2009 PAR 2009 RECU 2010 TOTAL RECU DU A CE JOUR




BA A. Municipalities/Cities Federation Bosnia Herzegovina 1 082 1 082

A. Municipalities/Towns Republic of Srpska 1 082 541 541 541


BG NAMRB 12 271 12 271 12 271 12 271

CH Association Suisse du CCRE 27 494 27 494 9 146 4 601 4 601 13 747 13 747


CZ Union of Towns and Communities of the Czech Repu 24 542 24 542 24 542 24 542





DK LGDK 18 252 18 252 18 252 18 252

Danish Regions 18 252 18 252 18 252 18 252

EE Association of Estonian Cities 1 228 1 228 1 228 1 228

Association of Municipalities of Estonia 1 226 1 226 1 226 1 226




GR Central Union of Greek Municipalities and Communit 50 410 50 410 50 410 50 410


IE Institute of Public Administration 2 073 2 073 2 073 2 073


IS Association of Local Authorities in Iceland 2 153 2 153 2 153 2 153

IT AICCRE 204 410 204 410 136 274 68 137 204 410 0

LT Association of local authorities in Lithuania 7 363 7 363 7 363 7 363

LU Association des Villes et Communes Luxemb. 5 572 5 572 5 572 5 572

LV Union of local and Regional Governmnts of Latvia 4 908 4 908 4 908 4 908

MK As. of units of local self -gov. of Macedonia (ZELS) 1 457 1 457 1 457 1 457


NL VNG / IPO 102 913 102 913 102 913 102 913



Assoc.of Polish Counties 19 177 13 636 4 545 4 545 9 091

PT Associaçao Nacional de Municipios Portugueses 41 783 41 783 16 827 24 776 180 180 41 783

RO Association of Romanian Communes (ACOR) 4 313 4 313 4 313 4 313

Association of Romanian Towns (AOR) 4 313 4 313 4 313 4 313



SI Assoc. of Municipalities and Towns of Slovenia 2 454 2 454 2 454 2 454


SE Swedish Association of Local Authorities and Region 57 343 57 343 57 343 57 343



UK Local Government Association 227 800 227 800 196 468 31 332 31 332 227 800

YU Standing conference of towns & municip. of Serbia 2 001 2 001 2 001 2 001


TOTAL 1 804 391 1 750 776 1 587 616 35 933 133 846 180 180 1 721 641 29 135

RECEIVED 91% 8% 0% 0% 98% 2%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2008 MAJ 2009 MAJ 2010 03/08/2010

54

MEMBERSHIP FEES : UCLG 2008 TOTAL BUDGET TOTAL CALLED TOTAL RECEIVED PROVISIONED 2008 RECEIVED 2009 PROVISIONED 2009 RECEIVED 2010 TOTAL RCVD DUE TO DATE

COTISATIONS : CGLU 2008 BUDGET TOTAL TOTAL APPELE TOTAL RECU 2008 PAR 2008 RECU 2009 PAR 2009 RECU 2010 TOTAL RECU DU A CE JOUR




BA A. Municipalities/Cities Federation Bosnia Herzegovina 69 69

A. Municipalities/Towns Republic of Srpska 69 69 69


BG NAMRB 704 704 704 704



CZ Union of Towns and Communities of the Czech Repu 2 561 2 561 2 561 2 561






Danish Regions 4 400 4 400 4 400 4 400






GR Central Union of Greek Municipalities and Communit 7 300 7 300 7 300 7 300





IT AICCRE 47 866 47 866 25 000 25 000 22 866

LT Association of local authorities in Lithuania 800 800 800 800

LU Association des Villes et Communes Luxemb. 720 720 720 720

LV Union of local and Regional Governmnts of Latvia 405 405 405 405

MK As. of units of local self -gov. of Macedonia (ZELS) 193 193 193 193


NL VNG / IPO 20 700 20 700 20 700 20 700





RO Association of Romanian Communes (ACOR) 748 748 748 748

Association of Romanian Towns (AOR) 748 748 748 748





SE Swedish Association of Local Authorities and Region 13 000 13 000 13 000 13 000



UK Local Government Association 48 477 48 477 41 809 6 668 6 668 48 477

YU Standing conference of towns & municip. of Serbia 387 387 387 387


TOTAL 380 135 380 273 281 445 6 668 6 668 25 000 313 113 67 161

RECEIVED 74% 2% 7% 82% 18%

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\RECU 2008 MAJ 2009 MAJ 2010 03/08/2010

55

SQUARE DE MEEUS 1 - BRUSSELS

03/08/2010

Organisation6 m. guarantee -

lease Art. 7.1Fitting costs - call

23/12/08Adjustm charges

2009charges 1st quarter 2008

Rent and common charges 4th quarter 2009

Rent and common charges 1st quarter

2010

Adjust rent and common charges 1st

quarter 2010

Rent and common charges 2nd quarter

2010

Rent and common charges 3rd quarter

2010OUTSTANDING

Due at the end of SEPTEMBER

Due at the end of DECEMBER

Due at the end of MARCH

Due at the end of MARCH

Due at the end of JUNE

5th floor

Council of European Municipalities and Regions – CEMR

AICCRE - Italian Section of CEMR 0,00

Central Union of Municipalities & Communities of Greece – KEDKE / Hellenic Agency for Local Development and Local Government – EETAA 0,00

4th floor

Local Government Denmark 0,00

Danish Regions 0,00

Association of Finnish Local and Regional Authorities 0,00

Icelandic Association of Local Authorities 0,00

Norwegian Association of Local and Regional Authorities 0,00

SUMMARY OF REIMBURSEMENTS

Overdue (in red)

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\summary reimbursements MAJ 28072010

Swedish Association of Local Authorities and Regions 0,00

Association of Estonian Cities / Association of Municipalities of Estonia 0,00

Convention of Scottish Local Authorities 0,00

Latvian Association of Local and Regional Governments – LALRG 16,86

3rd floor

Union of Cyprus Municipalities 0,00

Union of Towns and Municipalities of the Czech Republic 2 145,37

Association of Towns and Communities of Slovakia 0,00

Local Government Association 13 154,96

National Association of Municipalities in the Republic of Bulgaria – NAMRB See note below

Association of Polish Cities 15 766,14

The Association of Netherlands Municipalities 0,00

Romanian Municipalities Association 3 048,74

= DULY SETTLED = NOT YET SETTLED 34 132,07

Unpaid rent and charges by Bulgaria were charged to CEMR account for 25 077 €.

C:\Users\Dominique Arrestat\Documents\2010\budget\REAL 1007\summary reimbursements MAJ 2807201056



c:\users\dominique arrestat\documents\2010\cgf 0906\06 ap budget 2011_en fin nh.doc

PRE-DRAFT 2011 BUDGET

At the request of several CEMR members and taking into account of the financial difficulties faced by local and regional authorities, the Secretariat proposes a pre-draft budget with several different scenarios.

The members of the Financial Management Committee are invited to:

Take note of and debate this document;

(a) Decide which budgetary scenario(s) to submit to the Policy Committee, or

(b) Recommend an alternative basis for the Policy Committee to consider.

Debate possible developments in CEMR resources.

1. The human and financial resources of CEMR and those of other associations

It may be useful to firstly compare the human and financial resources of the four major associations of local and regional authorities in Europe. The CEMR, which constitutes the first large association and which covers the broadest geographical area, is in fact the association with the most limited resources:

Founded in Staff Budget

CEMR 1951 20 2,3

CPMR 1973 21 2,5

AER 1985 24 2,7

Eurocities 1986 33 3,8

Under these conditions, a substantial reduction of the budget would have serious consequences on the action and visibility of CEMR, whilst the Treaty of Lisbon, as we had hoped, is now opening new prospects of working with the Institutions.

57

2. Structure of CEMR budget in 2009 (excluding contracts)1

The accounts for the 2009 period show that the most essential resource for CEMR is the contribution of its members (86% of resources). Adding to this are; the grant from Community activities2 (11%) and other resources consisting of, in particular, a grant from DEXIA, reimbursements of salaries by UCLG and financial incomes (3%). Up until 2008, CEMR’s fixed resources (membership fees) covered the fixed costs of the organisation, conforming to the goal set by the Financial Management Committee. In 2009 however, the accounts revealed an imbalance in the order of 100,000€ in this respect.

SOUTH WEST EUROPE

EQUIPMENT

OTHER

PUBLICATION

OTHER MEETINGS

EC GRANT

OTH

ER 295 300 €

TOTAL 2 098 490 € TOTAL 2 099 958 €

MEM

BER

SHIP FEES 1 803 190 €

SOUTHERN EUROPE

WESTERN EUROPE

NORTHERN EUROPE

CENTRAL AND EASTERN

EUROPE

SALARIES

RENT AND MAINTENANCE

OTHER OFFICE COSTS

FIXED

COSTS 1 900 505 €

VARIABLE COSTS

199 453 €

TRAVEL

The diagram and table presented on the opposite page show the origin of CEMR resources.

1 The resources of contracts are equal to the expenses generated and have no bearing on the annual result. 2 This grant is a balancing grant, which restricts the CEMR to balancing the accounts of its financial years.

58

STRUCTURE OF CEMR BUDGET: RESOURCES

STRUCTURE DU BUDGET DU CCRE : RESSOURCES

(based on 2009 actual figures ‐ CEMR own budget only / contracts excluded) (montants réalisés en 2009 ‐ budget propre du CCRE / hors contrats)

Membership fees ‐ Southern Europe 709 832

Membership fees ‐ Western Europe 666 893

EC operating grant ‐ Citizenship 230 000

Membership fees ‐Northern Europe 206 012

Membership fees ‐ Central and Eastern Europe 165 483

Membership fees ‐ South East Europe 47 970

Other income 43 800

Other grants 21 500

Membership fee ‐ Israel 7 000

TOTAL RESOURCES 2009 2 098 490

NB.Aucune cotisation n'était appelée auprès de la Turquie en 2009. La cotisation 2011 s'élèvera à 43 523 €.

NB. No fee was called from Turkey in 2009. Fee to be called in 2011 will amount 43 523 €.

Membership fees ‐Southern Europe

34%

Membership fees ‐Western Europe

32%

EC operating grant ‐Citizenship

11%

Membership fees ‐Northern Europe

10%

Memb. fees ‐ Central and Eastern Europe

8%

Membership fees ‐ South East Europe

2%

Other income2%

Other grants1%

Membership fee ‐Israel0%

CEMR BUDGET ‐ RESOURCES

BUDGET DU CCRE ‐ RESSOURCES

59

3. Human resources of CEMR in 2010

The item ‘‘salaries and charges’’ is the largest component of the CEMR budget (67% of the total expenses in 2009). 18 employees are paid directly from the CEMR budget, of which one temporary contract is allocated to EU policy work. Furthermore, two positions are financed exclusively by the ‘‘PLATFORMA’’ programme (EU contract) and ‘‘European Charter on development cooperation in support of local Governance’’ (contract with French ministry of foreign affairs). The organisational chart of CEMR is as follows3:

3 The salary charges concerning the Secretary General are not included in the above figures.

60

4. Membership fees

The membership fees for CEMR members are recalculated each year in order to take into account variations of GDP and/or the population. Furthermore, the fees called for from post-2004 EU member states/candidates are progressively increasing with the addition of a margin of their GDP (until the rate corresponding to their GDP is reached). The Policy Committee decided that the increases would be limited to €5,000 or 15% per year, depending on which option is more favourable for each association. For those countries benefitting from the transitory rate, a 10% increase on the previous years sum is called for in countries whose GDP is lower than 20% of the EU average, and membership fees remain unchanged for countries whose GDP is lower than 10% of the EU average As a result, CEMR does not call for the entirety of the membership fees voted for at one time, and its members benefit de facto from a substantial reduction in the membership fees. The table below shows that, in 2009 and 2010 (membership fees were frozen in 2010 at 2009 levels), CEMR only called for 90% of membership fees voted for, i.e. €1,848,455 out of €2,053,384, which constitutes a decrease of €204,929 in resources, or 10% of the totality voted for.

C A LC U LA T ION 2 0 0 9

A C C OR D IN G T O D A T A

C A LL 2 0 0 9 and 2 0 10

% C A LLED

A ust r ia 6 1 4 8 4 6 0 9 3 2 9 9 % 1% 553

B elg ium 72 3 8 8 72 3 8 8 10 0 %

B ulg ar ia 15 6 58 14 112 9 0 % 10 % 1 54 6

C ro at ia 13 16 5 6 58 2 50 % 50 % 6 58 3

C yprus 4 2 72 3 9 72 9 3 % 7% 3 0 0

C zech R ep . 2 9 74 7 2 8 2 2 3 9 5% 5% 1 52 4

D enmark 3 9 4 6 8 3 9 4 6 8 10 0 %

Est o nia 3 777 2 8 2 2 75% 2 5% 9 54

F inland 3 6 0 2 8 3 6 0 2 8 10 0 %

F rance 2 3 6 9 76 2 11 0 0 0 8 9 % 11% 2 5 9 76

Germany 2 6 1 154 2 4 5 3 8 4 9 4 % 6 % 15 770

Greece 6 1 50 6 55 4 10 9 0 % 10 % 6 0 9 7

Hungary 2 9 2 8 2 2 8 2 2 3 9 6 % 4 % 1 0 59

Iceland 2 2 76 2 2 76 10 0 %

Ireland 4 2 70 4 2 70 10 0 %

Israel 7 2 9 0 7 2 9 0 10 0 %

It aly 2 14 6 2 2 2 0 9 4 10 9 8 % 2 % 5 2 12

Lat via 6 6 8 2 5 6 4 5 8 4 % 16 % 1 0 3 7

Lit huania 9 8 77 8 4 6 7 8 6 % 14 % 1 4 10

Luxemb o urg 8 114 6 4 0 8 79 % 2 1% 1 70 6

M alt a 1 78 7 1 78 7 10 0 %

N et herland s 114 12 1 10 7 9 13 9 5% 5% 6 2 0 9

N o rway 4 9 8 4 4 4 8 9 6 3 9 8 % 2 % 8 8 1

Po land 8 3 9 55 4 9 3 16 59 % 4 1% 3 4 6 3 9

Po rt ug al 4 5 3 6 2 4 5 3 6 2 10 0 %

R o mania 3 3 0 4 7 19 8 3 8 6 0 % 4 0 % 13 2 10

Slo vakia 15 6 8 7 14 112 9 0 % 10 % 1 575

Slo venia 5 8 10 2 8 2 2 4 9 % 51% 2 9 8 8

Sp ain 19 2 2 8 8 16 0 70 5 8 4 % 16 % 3 1 58 3

Swed en 6 5 153 6 2 3 4 3 9 6 % 4 % 2 8 11

Swit zer land 2 8 3 19 2 8 3 19 10 0 %

U nit ed King d o m 2 4 7 3 57 2 3 2 8 0 0 9 4 % 6 % 14 557

T OT A L EX C L. T R A N SIT OR Y R A T ES 1 9 8 5 4 6 6 1 8 2 2 58 9 9 2 % 8 % 16 2 8 77

A lb ania 3 6 0 2 6 2 8 17% 8 3 % 2 9 74

B o snia and Herz . 4 53 2 2 16 4 4 8 % 52 % 2 3 6 8

M aced o nia, F Y R 2 3 2 4 1 6 75 72 % 2 8 % 6 4 9

M o nt eneg ro 8 13 4 52 56 % 4 4 % 3 6 2

Serb ia 9 2 9 6 2 2 0 1 2 4 % 76 % 7 0 9 5

U kraine 3 4 18 6 18 74 5 55% 4 5% 15 4 4 1

T R A N SIT OR Y R A T ES 6 7 9 19 2 5 8 6 6 3 8 % 6 2 % 4 2 0 53

2 053 384 1 848 455 90% 10% 204 929

D E F A C T O D EC R EA SE D U E T O SY ST EM OF C EILIN GS

61

The 2011 draft budget presented in paragraph 5 below is based on the following four membership fees scenarios: Scenario 1: In this first scenario, the sum used as a base calculation for membership fees is identical to that of 2009 and the membership fees only increase, within an upper ceiling, for those members who, in 2009 and 2010, did not pay a membership fee strictly based on the GDP/population data. Therefore, the membership fees of those members who paid the applicable rate in 2009 and 2010 will remain identical in 2011, except for readjustment owing to a possible variation in population data and/or GDP of their country. The membership fees increase noticeably only for those members who, owing to the current ceiling system, did not pay the full applicable rate in 2009 and 2010. However, considering the financial difficulties member associations are facing, it is proposed to further limit the increases in membership fees and to reduce the ceilings to €2,500 or 7.5% depending on which option is more favourable for the member association. This will reduce the effects of sudden variation in GDP/population. The proposed levels (€2,500 or 7.5%) represent half of those applied up until 2009 (€5,000 or 15%) and that the Financial Management Committee had foreseen to increase. In this way, whilst the base rate remains the same as in 2009 and 2010, this scenario implies an increase of membership fees of around €36,000 or 2%, allowing CEMR to face levels of inflation encountered during the last years. Furthermore, it is proposed that the membership fees be left unchanged for those countries whose GDP is less that 20% the EU average. Scenario 2: A second scenario foresees a total freeze on all membership fees, so that the sums called in 2011 would be identical to those called in 2009 and 2010. In this scenario, the GDP/Population data remains therefore based on data published by EUROSTAT for the period 2007. Scenario 3: A third scenario foresees an overall reduction of membership fees by 5%. Scenario 4 : A fourth scenario foresees an overall reduction of membership fees by 10%. The resulting membership fees for each country, based on each of the four scenarios outlined above, are detailed in the table found on the following page. The consequences of each scenario on the budget and the action of CEMR are outlined in the following pages.

62

CALCULATION OF 2011 MEMBERSHIP FEES FOR THE FOUR SCENARIOS DETAILED ABOVE

SCENARIO 1 SCENARIO 2 SCENARIO 3 SCENARIO 4

CALL 2009 + 2010

+ 50% C EILIN GS

/ PLA F ON D S

FREEZE / GEL

MINUS 5%MINUS

10%

Austria 60 932 60 932 60 932 57 885 -3 047 -5% 54 839 -6 093 -10%

Belgium 72 388 72 388 72 388 68 769 -3 619 -5% 65 149 -7 239 -10%

Bulgaria 14 112 15 170 1 058 7,5% 14 112 13 406 -706 -5% 12 701 -1 411 -10%

Croatia 6 582 7 076 494 7,5% 6 582 6 253 -329 -5% 5 924 -658 -10%

Cyprus 3 972 4 270 298 7,5% 3 972 3 773 -199 -5% 3 575 -397 -10%

Czech Rep. 28 223 30 340 2 117 7,5% 28 223 26 812 -1 411 -5% 25 401 -2 822 -10%

Denmark 39 468 39 468 39 468 37 495 -1 973 -5% 35 522 -3 947 -10%

Estonia 2 822 3 034 212 7,5% 2 822 2 681 -141 -5% 2 540 -282 -10%

Finland 36 028 36 028 36 028 34 226 -1 801 -5% 32 425 -3 603 -10%

France 211 000 213 500 2 500 1,2% 211 000 200 450 -10 550 -5% 189 900 -21 100 -10%

Germany 245 384 247 884 2 500 1,0% 245 384 233 115 -12 269 -5% 220 846 -24 538 -10%

Greece 55 410 57 910 2 500 4,5% 55 410 52 639 -2 770 -5% 49 869 -5 541 -10%

Hungary 28 223 30 340 2 117 7,5% 28 223 26 812 -1 411 -5% 25 401 -2 822 -10%

Iceland 2 276 2 276 2 276 2 163 -114 -5% 2 049 -228 -10%

Ireland 4 270 4 218 -52 -1,2% 4 270 4 056 -213 -5% 3 843 -427 -10%

Israel 7 290 7 290 7 290 6 926 -365 -5% 6 561 -729 -10%

Italy 209 410 211 910 2 500 1,2% 209 410 198 940 -10 471 -5% 188 469 -20 941 -10%

Latvia 5 645 6 068 423 7,5% 5 645 5 362 -282 -5% 5 080 -564 -10%

Lithuania 8 467 9 102 635 7,5% 8 467 8 044 -423 -5% 7 620 -847 -10%

Luxembourg 6 408 6 889 481 7,5% 6 408 6 088 -320 -5% 5 767 -641 -10%

Malta 1 787 1 787 1 787 1 698 -89 -5% 1 608 -179 -10%

Netherlands 107 913 110 413 2 500 2,3% 107 913 102 517 -5 396 -5% 97 121 -10 791 -10%

Norway 48 963 48 963 48 963 46 515 -2 448 -5% 44 066 -4 896 -10%

Poland 49 316 53 015 3 699 7,5% 49 316 46 850 -2 466 -5% 44 384 -4 932 -10%

Portugal 45 362 47 493 2 131 4,7% 45 362 43 094 -2 268 -5% 40 826 -4 536 -10%

Romania 19 838 21 325 1 488 7,5% 19 838 18 846 -992 -5% 17 854 -1 984 -10%

Slovakia 14 112 15 170 1 058 7,5% 14 112 13 406 -706 -5% 12 701 -1 411 -10%

Slovenia 2 822 3 034 212 7,5% 2 822 2 681 -141 -5% 2 540 -282 -10%

Spain 160 705 163 205 2 500 1,6% 160 705 152 670 -8 035 -5% 144 634 -16 070 -10%

Sweden 62 343 64 843 2 500 4,0% 62 343 59 225 -3 117 -5% 56 108 -6 234 -10%

Switzerland 28 319 28 319 28 319 26 903 -1 416 -5% 25 487 -2 832 -10%

United K. 232 800 235 300 2 500 1,1% 232 800 221 160 -11 640 -5% 209 520 -23 280 -10%

TOTAL 1 EXCL. T R A N SITOR Y R A T ES

1 822 589 1 858 959 36 370 2,0% 1 822 589 1 731 460 -91 129 -5% 1 640 330 -182 259 -10%

Albania 628 628 628 597 -31 -5% 565 -63 -10%

Bosnia and Herz. 2 164 2 164 2 164 2 056 -108 -5% 1 948 -216 -10%

Macedonia, FYR 1 675 1 675 1 675 1 591 -84 -5% 1 508 -168 -10%

Montenegro 452 452 452 429 -23 -5% 407 -45 -10%

Serbia 2 201 2 201 2 201 2 091 -110 -5% 1 981 -220 -10%

Ukraine 18 745 18 745 18 745 17 808 -937 -5% 16 871 -1 875 -10%

TOTAL 2 T R A N SITOR Y R A T ES

25 866 25 866 25 866 24 572 -1 293 -5% 23 279 -2 587 -10%

GRAND TOTAL 1 848 455 1 884 825 36 370 2,0% 1 848 455 1 756 032 -92 423 -5% 1 663 610 -184 846 -10%

NEW MEMBERTurkey 21 761 43 523 21 762 100% 43 523 21 762 100% 43 523 21 762 100% 43 523 21 762 100%

DIFFERENCEDIFFERENCEDIFFERENCE DIFFERENCE

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5. Draft 2011 budget4

The four membership fee scenarios have the following effect on the CEMR budget for 2011:

2010 CEMR ONLY

VOTED FEES PARTLY

UPDATEDFEES FROZEN

DECREASE 5% IN FEES

DECREASE 10% IN FEES

VOTEMISE A JOUR PARTIELLE

COTISATIONS GELEES

REDUCTION COTIS. 5%

REDUCTION COTIS. 10%

SCENARIO 1 SCENARIO 2 SCENARIO 3 SCENARIO 4

INCOME1 843 000 (1) CEMR membership fees 1 859 000 1 823 000 1 731 000 1 640 000

28 000 (2) CEMR memb. fees - transitory rates 26 000 26 000 24 000 23 000

(3) CEMR memb. fees - new member 43 000 43 000 43 000 43 000

UCGL membership fees

1 871 000 Call for membership fees 1 928 000 1 892 000 1 798 000 1 706 000

-84 000 (4) Fees uncertain to recover - CEMR -122 000 -122 000 -104 000 -104 000

Fees uncertain to recover - UCLG

Transfers to UCLG

1 787 000 Net membership fees 1 806 000 1 770 000 1 694 000 1 602 000

240 000 (5) EC grant 241 000 236 000 226 000 214 000

EC Contracts

Contracts cofinancing

20 000 (6) Sponsorship 20 000 20 000 20 000 20 000

16 000 (7) General Assembly 16 000 16 000 16 000 16 000

20 000 (8) Other income 10 000 10 000 10 000 10 000

10 000 (9) Financial Income 10 000 10 000 10 000 10 000

2 093 000 TOTAL 2 103 000 2 062 000 1 976 000 1 872 000

EXPENDITURE

1 349 000 (10) 1 355 000 1 355 000 1 299 000 1 214 000

220 000 (11) Office Rent 204 000 204 000 204 000 204 000

220 000 (12) Other office costs 224 000 224 000 224 000 224 000

80 000 (13) Meeting costs 81 000 69 000 51 000 45 000

92 000 (14) Travel 96 000 80 000 77 000 74 000

5 000 (15) Political representation / Rapporteurs 5 000

79 000 (16) Communication / publications 79 000 74 000 65 000 60 000

12 000 (17) EC Contracts 15 000 15 000 15 000 15 000

20 000 (18) Depreciation 30 000 27 000 27 000 22 000

6 000 (19) Bank charges 7 000 7 000 7 000 7 000

10 000 (20) Unforeseen 7 000 7 000 7 000 7 000

2 093 000 TOTAL 2 103 000 2 062 000 1 976 000 1 872 000

0 RESULT 0 0 0 0

Personnel

2011 - CEMR OWN BUDGET ONLY (CONTRACTS AND UCLG EXCLUDED)

4 The UCLG membership fees as well as the contracts, both of which have no effect on the CEMR result, are not included in the above

table. They are featured in a point below (see ‘‘other budgetary items’’).

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INCOME (1), (2) and (3) CEMR Membership fees

See above, paragraph 4. (4) Fees uncertain to be recovered and provisions

This item covers the risk of non payment of membership fees.

(5) EC Grant5 The European Commission accorded CEMR €240,000 for 2010. The grant agreement indicates that this grant can represent no more than 11.36% of the Organisation’s global budget, a rate maintained in the different scenarios.

(6) Other contracts The indicated sum (€20,000) corresponds to the grant provided by DEXIA in 2009 and expected for 2010.

(7) General Assembly The indicated sum (€16,000) corresponds to the sum previewed in the convention currently going through the signature process.

(8) Other sources of income The proposed budget (€10,000) corresponds to the reimbursement of salaries by UCLG in the context of the financial assistance provided by CEMR. It is foreseen that this assistance will be reduced for 2011 in relation to previous years.

(9) Financial income The indicated sum (€10,000) corresponds to the amount yielded in previous years.

EXPENDITURE (10) Staff

Scenarios 1 and 2 allow the CEMR to maintain the current staff structure. Scenario 3 implies the reduction of one post on Policy. Scenario 4 implies the reduction of three posts. Proposals in this context cannot be elaborated on at this stage, considering that the elimination of certain posts can incur serious consequences for the activity and the resources of CEMR (e.g. EU Policy team and Citizenship).

(11) Office rent

The proposed budget (€204,000) does not take into account possible non-payment by current sub-lessors in Brussels and supposes that no vacant space will remain unoccupied.

(12) Other running costs This item (€224,000) essentially covers fixed cost (office supplies, material rental, cleaning, maintenance, insurance, phones, taxes etc…).

(13) Meetings, (14) Travel, (15) Political Representation and (16) Communication

These items cover the variable costs of the Organisation. Scenarios 3 and 4 represent a serious reduction in CEMR’s presence on the European scene.

(17) EC Contracts The sum indicated (€15,000) corresponds to the co-financing that CEMR is committed to providing in the framework of contracts to which it is committed.

(18) Depreciation of equipment This item covers the need of the Organisation to renew and acquire materials.

(19) Financial charges The sum indicated (€7,000) corresponds to the amounts encountered in previous years.

5 The EC grant is allocated in the framework of the community programme ‘’Europe for Citizens’’, which seeks to contribute to the

following general objectives: (1) give citizens the opportunity to integrate and participate in the construction of a more united and democratic Europe open to the world, united in its cultural diversity and, by developing this diversity, develops citizenship of the European Union; (2) develop the common feeling of a European identity; (3) reinforce the feeling that citizens are stakeholders in the Union; (4) increase tolerance and mutual comprehension of European citizens by respecting and promoting cultural and linguistic diversity, all the while contributing to intercultural dialogue.

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OTHER BUDGETARY ITEMS

EC Contracts The sum of €354,000 corresponds to the proposed budget for the action carried out in 2011 under ‘‘informal platform of local/regional authorities for development cooperation (PLATFORMA)’’. The application for the period 2011-2012 is currently being studied by the European Commission.

The submission of additional actions is currently being studied. This budget could be amended in relation to the response from the Commission.

Furthermore, it is foreseen that the French ministry of foreign affairs will renew the grant related to CEMR for the promotion of the ‘‘European Charter in development cooperation in support of local government’’ (€52,000).

UCLG membership fees

The UCLG World Council decided to adopt a new membership fee system, implemented from 2008 onward. According to this system, membership fees are calculated in relation to population and GDP, resulting in a transparent and balanced calculation method between different member categories and different regions. The new system was implemented for a period of ten years from 2008 onward and therefore allows for moderate variation in membership fees from one year to the next.

The sums voted for from 2010 to 2017 are resumed below. For 2011, they total a CEMR members’ contribution of €385,000.

2010 2011 2012 2013 2014 2015 2016 2017

AL Albanian Association of Municipalities 195 203 211 218 226 234 242 250

AT Österreichischer Städtebund 5 800 5 800 5 800 5 800 5 800 5 800 5 800 5 800Österreichischer Gemeindebund 5 800 5 800 5 800 5 800 5 800 5 800 5 800 5 800

BA A. Mun./Cities Federation Bosnia Herzegovina 276 276 276 276 276 276 276 276A. Municipalities/Towns Republic of Srpska 276 276 276 276 276 276 276 276

BE Union des Villes et Communes Belges 15 900 15 900 15 900 15 900 15 900 15 900 15 900 15 900BG NAMRB 712 716 719 723 727 731 735 739

CH Association Suisse du CCRE 8 946 9 361 9 777 10 192 10 607 11 023 11 438 11 853CY Union of Cyprus Municipalities 500 500 500 500 500 500 500 500CZ Union of Towns and Communities of the Czech Republic 2 682 2 742 2 803 2 864 2 924 2 985 3 045 3 106DE Deutscher Landkreistag 6 000 6 000 6 000 6 000 6 000 6 000 6 000 6 000

Deutscher Städtetag 14 300 14 300 14 300 14 300 14 300 14 300 14 300 14 300Städte und Gemeindebund 7 100 7 100 7 100 7 100 7 100 7 100 7 100 7 100Rat der Gemeinden und Regionen Europas 30 400 30 400 30 400 30 400 30 400 30 400 30 400 30 400

DK Local Government Denmark 4 400 4 400 4 400 4 400 4 400 4 400 4 400 4 400Danish Regions 4 400 4 400 4 400 4 400 4 400 4 400 4 400 4 400

EE Association of Estonian Cities 300 300 300 300 300 300 300 300Association of Municipalities of Estonia 300 300 300 300 300 300 300 300

ES Federación Española de Municipios y Provincias 31 900 31 900 31 900 31 900 31 900 31 900 31 900 31 900FI Association of Finnish Local and Regional Authorities 7 600 7 600 7 600 7 600 7 600 7 600 7 600 7 600FR Association Française pour le CCRE 50 971 51 028 51 086 51 143 51 201 51 258 51 316 51 373GR Central Union of Greek Municipalities and Communities 7 300 7 300 7 300 7 300 7 300 7 300 7 300 7 300HR Croatian County Association 514 514 514 514 514 514 514 514

HU Hungarian Associations 2 623 2 663 2 704 2 745 2 786 2 827 2 868 2 909IL Union of Local Authorities in Israel 6 900 6 900 6 900 6 900 6 900 6 900 6 900 6 900IS Association of Local Authorities in Iceland 401 401 401 401 402 402 402 402IT AICCRE 47 866 47 866 47 866 47 866 47 866 47 866 47 866 47 866LT Association of local authorities in Lithuania 800 800 800 800 800 800 800 800

LU Association des Villes et Communes Luxemb. 761 781 801 822 842 862 883 903LV Union of local and Regional Governmnts of Latvia 414 418 423 428 432 437 441 446MK Ass. of units of local self -gov. of Macedonia (ZELS) 206 212 219 225 231 237 244 250MO Union of Municipalities of Montenegro 117 136 155 174 193 212 231 250MT Maltese Association of Local Councils 215 220 225 230 235 240 245 250

NL VNG / IPO 20 700 20 700 20 700 20 700 20 700 20 700 20 700 20 700NO Kommunenes Sentralforbund 7 562 7 716 7 870 8 024 8 178 8 332 8 486 8 641PL Assoc. of Polish Cities 3 895 4 114 4 332 4 551 4 769 4 988 5 206 5 424

Assoc.of Polish Counties 1 731 1 828 1 925 2 023 2 120 2 217 2 314 2 411PT Associaçao Nacional de Municipios Portugueses 8 700 8 700 8 700 8 700 8 700 8 700 8 700 8 700

RO Association of Romanian Communes (ACOR) 893 966 1 039 1 111 1 184 1 257 1 329 1 402Association of Romanian Towns (AOR) 893 966 1 039 1 111 1 184 1 257 1 329 1 402National Union of County Councils of Romania 893 966 1 039 1 111 1 184 1 257 1 329 1 402Romanian Municipalities Association (AMR) 893 966 1 039 1 111 1 184 1 257 1 329 1 402

RS Standing conference of towns & municip. of Serbia 470 512 553 595 636 678 719 761SI Assoc. of Municipalities and Towns of Slovenia 362 382 403 423 444 465 485 506

SE Swedish Association of Local Authorities and Regions 13 000 13 000 13 000 13 000 13 000 13 000 13 000 13 000SK Assoc. of Towns and Communities of Slovakia 1 400 1 400 1 400 1 400 1 400 1 400 1 400 1 400UA Association of Ukrainian cities 2 959 2 959 2 959 2 959 2 959 2 959 2 959 2 959UK Local Government Association 51 032 52 309 53 586 54 863 56 140 57 418 58 695 59 972

TOTAL 382 257 384 998 387 739 390 480 393 221 395 963 398 704 401 445

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6. Development of CEMR resources

The membership freeze in 2010, followed by a new freeze – or possible reduction – in 2011 would have serious consequences on the capacity for action of CEMR. Several options which would allow for the development of new resources are proposed in the framework of the CEMR reflection process. In addition to these options, the Secretariat submits the following base reflection to the Financial Management Committee: VOLUNTARY SOLIDARITY CONTRIBUTION (VSC)

CONTEXT: The Treaty of Lisbon opens new prospects for work between CEMR and the European Institutions. These new prospects result in an increased workload for our association, with the possibility of having a significant influence on the decisions and future decision taken by the European Union concerning local and regional authorities. We are now in a position to bring life to these new rights which we contributed to having incorporated into European Union texts. At the same time, a certain number of our members are encountering difficulties linked to the economic situation which consequently risks limiting our own capacities. In order to fully assume this development in our activities and continue to effectively defend the interests of European local and regional authorities, CEMR must find new resources. In this context, we propose to create a voluntary solidarity contribution which will allow those local and regional authorities who wish to, to contribute to the financing of CEMR activities. PRINCIPLE: European local and regional authorities are represented within CEMR through their national associations. The Voluntary Solidarity Contribution offers the possibility, for those authorities who so desire, to allocate specific financing (an additional percentage of their membership fee to their member associations) for the European action of their national association, i.e. CEMR. For national associations, this will mean a supplementary income to be received and transferred to CEMR: the national association should make known and encourage this possibility among its members. Thus, those authorities whose elected representatives participate in the decision making process of CEMR will be invited to further contribute, as is the case in other associations. In order to ensure a completely transparent system, the national association will keep an updated list of authorities who wish to contribute to the VSC and address this list to the CEMR secretariat general. In return, CEMR will inform the national association of the possible interest of L/R authorities. THE INTEREST FOR THOSE AUTHORITIES CONCERNED: Following the voluntary affiliation marking a commitment to Europe on behalf of the authorities, municipalities and regions who accept to contribute to the budget of the European Organisation through VSC will also receive the monthly information letter on the activities of CEMR and will be able to participate in its activities (working groups, conferences and general assembly) according to terms and conditions to be further defined. They will benefit from privileged access to CEMR services, in particular the Extranet. They will be received at the CEMR offices on the occasion of visits to Brussels.

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68

MEETING OF THE CEMR FINANCIAL MANAGEMENT COMMITTEE

PARIS, 6 SEPTEMBER 2010


c:\users\dominique arrestat\documents\2010\cgf 0906\07 call audit 2011 2016.doc

LEGAL AUDIT ENGAGEMENT FOR THE PERIOD 2011 – 2016 CALL FOR PROPOSALS

Deloitte were nominated by the Policy Committee in Vienna (12 December 2005) for a period of six years (2005-2010). Deloitte will therefore audit the accounts for the current financial year 2010, but a new nomination must take place for the following years. To comply with the EC regulation on the operating grant, CEMR is due to close its accounts before the end of February following each year. The nomination of the auditors who will be in charge of the following legal period of six years (2011-2016) should then be decided before the meeting of the Policy Committee due to take place in the end of 2011. Should a different firm be nominated, this will ensure that the secretariat gets enough time to work with the new team prior to the audit itself. Terms of reference are attached. They are drafted in compliance with the legal provisions in France, where CEMR head office is located. The Financial Management Committee usually requests to nominate big international firms, and we have invited the following firms to respond:

- Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. PricewaterhouseCoopers in Paris indicated that they have no specific department dealing with associations. The proposals of the other firms will be presented at the meeting of the Financial Management Committee, together with a recapitulation of the offers. In the current context of financial crisis, the call was extended to a smaller firm, which proposal will also be presented to the Committee. The members of the Financial Management Committee are invited to: Take note of and debate this document; Advise the Policy Committee in view of the nomination of the most appropriate firm for the

period 2011 – 2016.

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15 rue de Richelieu F-75001 Paris square de Meeûs, 1 B – 1000 Bruxelles Tél : + 33 1 44 50 59 59 ● Fax : + 33 1 44 50 59 60 Tél : + 32 2 511 74 77 ● Fax : + 32 2 511 09 49

[email protected] – www.ccre.org

CONSEIL DES COMMUNES ET REGIONS D'EUROPE SECTION EUROPEENNE DE CITES ET GOUVERNEMENTS LOCAUX UNIS

COUNCIL OF EUROPEAN MUNICIPALITIES AND REGIONS EUROPEAN SECTION OF UNITED CITIES AND LOCAL GOVERNMENTS

26/08/2010

h:\compta\commissaire aux comptes\appel d'offres 2011\appel d'offres_an 2011.doc

TERMS OF REFERENCE

LEGAL AUDIT ENGAGEMENT

This assignment concerns the whole of the CEMR’s activities in France and abroad: Paris and Brussels. OBJECTIVES 1. Legal audit engagement:

Certification of the legality and the genuineness of the annual accounts. Advice in the context of the development of financial information, for the statutory bodies of the

CEMR. In the context of a general control, dialogue with the Secretary General and Financial Executives.

2. Engagement of assistance and advice in the daily management in the following areas:

accounting legal fiscal financial administrative organisation

Alert engagement for any risk situation in these areas. For the more important or more specialised recommendations, an estimate will be drawn up by the

auditor. The CEMR will then be able to choose between this estimate or that of another advisor. 3. The assignment covers the assessment of the quality and efficiency of:

the procedures the internal inspection financial information circuit.

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2

4. This engagement may require your presence as Legal Auditor at certain statutory meetings of the CEMR. 5. Duration The contract is valid for a duration of 6 years (2011-2016) renewable each year. The yearly accounts must be closed and certified not later than 28 February following each financial year.

An assessment of the quality of the services rendered will be undertaken at the conclusion of the 2011

audit. 6. Payment

Specify the sum and the mode of invoicing. Time allowed:

the contract provides for an inclusive assessment if it turns out that the time spent is lower than expected, the actual costs will be invoiced.

7. Reports ♦ General Report by the Statutory Auditor on the annual financial statements.

In French and English. ♦ Special Report by the Statutory Auditor on the regulated agreements.

In French and English. 8. Information provided by the CEMR

The CEMR is committed to provide the legal auditor, within the time limit, all information necessary to enable him to carry out his mission,

The CEMR undertakes to provide an efficient collaboration of its personnel in the context of this

assignment.

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