INSTITUCIONS OF THE EUROPEAN UNION

The European Court of Auditors

The European Court of Auditors, based in Luxembourg, is the institution responsible for overseeing the EU's finances. It also assumes the commitment to be an efficient organization at the forefront of innovations in the field of auditing and administration of the public sector. As an external auditor, the Court protects the interests of European taxpayers.

 

The Court of Auditors deals, in particular, with:

  1.  Monitor the revenue and expenditure of the Union in order to improve the management of the budget by the EC and the rendering of accounts of the Union's financial situation.
  2.  Control the different managers of European Funds, including random checks in the European Institutions, particularly in the EC, which is the main body in charge of budget execution, the Member States and the countries that receive EU funds, since the Commission manages with them most of the funds (around 80%).
  3. It draws up audit reports, in which it collects the facts found and the pertinent recommendations, destined for the EC and the Member States.
  4. It transfers the indications of fraud, corruption or other illegal actions to the European Anti-Fraud Office (OLAF), which in turn after its investigation may, if necessary, transfer it to the fiscal ministry of the corresponding country.
  5. It sends an annual report to Parliament and the Council that serves as the basis for the discharge by the EC of the annual EU budget.
  6. It publishes recommendations prepared by experts, in order to help policy makers better manage funds and to account for this to European citizens.
  7. It publishes recommendations on European legislative proposals that affect the financial management of the Union, as well as opinions, analyzes and other publications on EU public finances.

The Court acts in a completely independent manner, of the institutions and bodies it controls. Its members, one per Member State (28), are appointed by the Council of the EU after consulting Parliament, for a renewable mandate of six years. The Court elects from among its members a President, whose mandate is also renewable for three years.

The Tribunal works through audit groups, called "chambers" that prepare reports and recommendations for approval by the Court.