This is a presentation I did to explain the Court of Auditors in Università Politecnica delle Marche during the course of European Law by Giancarlo Vilella, Directorate-General for Innovation and Technological Support in the EU parliament.
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European law presentation
1. THE EUROPEAN COURT
OF AUDITORS
EUROPEAN LAW
Ancona, 24 February 2012
Matteo Giovannangeli
2. DEFINITION
“The European Court of Auditors is the EU institution
responsible for the examination of the accounts of all revenues
and expenditures of the Union and of its bodies,
and for assessing the quality of the financial management.”
3. MISSION
“The European Court of Auditors contributes to improve EU
financial management
and acts as the independent guardian of the financial interests
of the citizens of the Union”
4. The TASKS of the Court are:
• Examining whether Financial operations have been
– Properly recorded and disclosed
– Legally and regularly executed
– Managed so as to ensure economy efficiency and effectiveness
• Promoting accountability and transparency about the revenues
and expenditure of EU to the citizens.
The PORPUSE of the Court are:
• To ensure that EU taxpayers get maximum value for their money
• Improve the financial management of the EU budget.
5. HISTORY
Before 1975 the auditing bodies were:
– Auditor of the ECSC
– Audit board of the EEC and Euratom
1. Created by the Treaty of Brussels of 1975, based in Luxembourg
2. Started operating in the October 1977 as an external audit body with an
undefined legal status.
3. Recognized as an Institution since 1993 by the Treaty of Maastricht
4. Strengthened by the Treaty of Amsterdam in 1997, emphasizing its
role in the fight against fraud and allowing it to have recourse to the
Court of Justice in order to protect its prerogatives with regard to the
other EU institutions.
6. STRUCTURE
• President (Vítor Manuel da Silva Caldeira – Portugal)
– elected each 3 years by the members of the Court
– chairs the Court meetings, ensures that Court decisions are implemented and that the
institution and its activities are soundly managed.
• Collegiate body
– 27 members appointed by the Council for a six-year renewable term (one for each EU
State)
– Each Member is responsible for his or her own tasks, primarily within auditing
• Staff of approximately 800 auditors, translators and
administrators.
7. STRUCTURE
• The Court organizes itself around five Chambers, to which Members are
assigned with responsibility for specific areas of expenditure and for
revenue.
– Chamber 1 – Preservation and Management of natural resources
– Chamber 2 – Structural policies, Transport and Energy
– Chamber 3 – External Actions
– Chamber 4 – Revenue, Research and Internal Policies, and Institution and
bodies of the European Union
– CEAD Chamber – Coordination, Evaluation, Assurance and Development
8. CODE OF CONDUCT
based on this ethical guidelines
INDIPENDENCE
INTEGRITY
IMPARTIALITY
PROFESSIONALISM
ADDING VALUE
EXCELLENCE
EFFICENCY
9. WORK
…the starting point for the Court’s work…
EU Budget: approx. 120 bln € (1% of EU-GNI). It consists of:
1. Members contribution based on GNI (65,4%)
2. Members contribution based on VAT collected (16.9%)
3. Custom and agricultural duties (16,5%)
The Budget is decided ANNUALLY by the Council and the European
Parliament, and proposed by the European Commission responsible for
implementing it.
10. WORK
The AUDITING PROCESS consists of three stages:
• PLANNING: auditors collect and analyze data from the European Commission
and from the administrations of Member States and beneficiaries. For each audit
undertaken, the auditors prepare an investigation plan that describes the scope,
methodology and objectives of the audit.
• AUDITING: the auditors collect evidence in accordance with the audit program,
both within the EU institutions and on the ground in the Member States and
beneficiaries. The evidence are collected through the examination of key
documents, physical inspection.
• REPORTING: the results of the audit work is broadcast to all interested parties
(the body subject of the audit, Commission and Parliament, the public).
11. WORK
The output that the Court publishes:
• Annual reports: present the results of financial audits in the form of
statements of assurance on the general budget and on the European
Development Funds. These two reports are published together in
November.
• Specific annual reports: present the results of financial audits on the
Communities agencies and bodies.
• Special reports: present the results of selected performance and
compliance audits. Special reports can be published at any time during
the year.
12. WORK
The Court carries out three different types of audits work:
• Financial Audits: show if the accounts present in accordance with
the applicable financial reporting framework.
• Compliance Audits: show if the transactions are in compliance
with the legal and regulatory frameworks.
• Performance Audits: show if the results are achieved with the
least possible resources (efficiency) and if the objectives have been
met (effectiveness).
The Court's audit of the EU accounts is carried out in line with
International Standards on Audit (ISA)